Question:
Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 6% simple interest.
Correct Answer
$8239
Solution And Explanation
Solution
Given,
Principal (P) = $5350
Rate of Simple Interest (SI) = 6%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% per annum.
Method (1) Using Formula
Calculation of Simple Interest
Formula to Calculate Simple Interest
Simple Interest (SI) = Principal × Rate × Time
Thus, Simple Interest (SI) = $5350 × 6% × 9
= $5350 ×6/100 × 9
= 5350 × 6 × 9/100
= 32100 × 9/100
= 288900/100
= $2889
Thus, Simple Interest = $2889
Calculation of Amount
The total money paid to the lender by a borrower is called the Amount.
In other words, sum of priciple and interest is called the Amount.
Formula to Calculate the Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $2889
= $8239
Thus, Amount to be paid = $8239 Answer
Method (2)
Calculation of Amount when Principal, Rate of Simple Interest and Time are given
Calculation of Amount directly using Principal, SI, and Time
Formula to calculate the Amount
Amount (A) = Principal (P) + Principal(P) × Rate of Interest (SI) × Time (t)
⇒ A = P + PRT
Here in the question, P = $5350
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 9 years
Thus, Amount (A)
= $5350 + ($5350 × 6% × 9)
= $5350 + ($5350 ×6/100 × 9)
= $5350 + (5350 × 6 × 9/100)
= $5350 + (32100 × 9/100)
= $5350 + (288900/100)
= $5350 + $2889 = $8239
Thus, Amount (A) to be paid = $8239 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $5350, the simple interest in 1 year
= 6/100 × 5350
= 6 × 5350/100
= 32100/100 = $321
Thus, simple interest for 1 year = $321
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $321 × 9 = $2889
Thus, Simple Interest (SI) = $2889
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $2889
= $8239
Thus, Amount to be paid = $8239 Answer
Similar Questions
(1) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 9% simple interest.
(2) If John paid $3712 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(3) Calculate the amount due if Linda borrowed a sum of $3350 at 7% simple interest for 3 years.
(4) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6216 to clear the loan, then find the time period of the loan.
(5) How much loan did Kenneth borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8400 to clear it?
(6) Jennifer took a loan of $4500 at the rate of 8% simple interest per annum. If he paid an amount of $7380 to clear the loan, then find the time period of the loan.
(7) Anthony had to pay $4558 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(8) How much loan did Anthony borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7875 to clear it?
(9) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $11560 to clear the loan, then find the time period of the loan.
(10) What amount does William have to pay after 6 years if he takes a loan of $3500 at 5% simple interest?