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) Sandra took a loan of $6900 at the rate of 10% simple interest per annum. If he paid an amount of $13800 to clear the loan, then find the time period of the loan.
(2) Lisa took a loan of $6100 at the rate of 10% simple interest per annum. If he paid an amount of $10980 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(4) Anthony took a loan of $6600 at the rate of 7% simple interest per annum. If he paid an amount of $10296 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if Karen borrowed a sum of $3950 at 6% simple interest for 4 years.
(6) Find the amount to be paid if Sarah borrowed a sum of $5850 at 3% simple interest for 7 years.
(7) Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 6% simple interest.
(8) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 10% simple interest.
(9) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 7% simple interest.
(10) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $6800 to clear the loan, then find the time period of the loan.