Simple Interest
MCQs Math


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 Thomas borrowed a sum of $5800 at a rate of 10% simple interest.

(2) Barbara took a loan of $5100 at the rate of 8% simple interest per annum. If he paid an amount of $7548 to clear the loan, then find the time period of the loan.

(3) Calculate the amount due if Charles borrowed a sum of $3900 at 5% simple interest for 4 years.

(4) Ashley had to pay $4959.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(5) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 4% simple interest?

(6) Nancy took a loan of $6300 at the rate of 7% simple interest per annum. If he paid an amount of $9828 to clear the loan, then find the time period of the loan.

(7) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 2% simple interest?

(8) Lisa had to pay $4414.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(9) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 9% simple interest?

(10) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 10% simple interest.


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