Question:
( 1 of 10 ) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 6% simple interest.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$5400
Correct Answer
$8316
Solution And Explanation
Solution
Given,
Principal (P) = $5400
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) = $5400 × 6% × 9
= $5400 ×6/100 × 9
= 5400 × 6 × 9/100
= 32400 × 9/100
= 291600/100
= $2916
Thus, Simple Interest = $2916
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 = $5400 + $2916
= $8316
Thus, Amount to be paid = $8316 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 = $5400
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 9 years
Thus, Amount (A)
= $5400 + ($5400 × 6% × 9)
= $5400 + ($5400 ×6/100 × 9)
= $5400 + (5400 × 6 × 9/100)
= $5400 + (32400 × 9/100)
= $5400 + (291600/100)
= $5400 + $2916 = $8316
Thus, Amount (A) to be paid = $8316 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 $5400, the simple interest in 1 year
= 6/100 × 5400
= 6 × 5400/100
= 32400/100 = $324
Thus, simple interest for 1 year = $324
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $324 × 9 = $2916
Thus, Simple Interest (SI) = $2916
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5400 + $2916
= $8316
Thus, Amount to be paid = $8316 Answer
Similar Questions
(1) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $9672 to clear the loan, then find the time period of the loan.
(2) Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $7790 to clear the loan, then find the time period of the loan.
(3) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 10% simple interest?
(4) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 9% simple interest?
(5) Elizabeth took a loan of $4900 at the rate of 10% simple interest per annum. If he paid an amount of $9800 to clear the loan, then find the time period of the loan.
(6) What amount does Elizabeth have to pay after 6 years if he takes a loan of $3450 at 9% simple interest?
(7) Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $9394 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 8% simple interest.
(9) Barbara took a loan of $5100 at the rate of 9% simple interest per annum. If he paid an amount of $9231 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Patricia borrowed a sum of $5150 at 3% simple interest for 7 years.