Question:
Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 6% simple interest.
Correct Answer
$8547
Solution And Explanation
Solution
Given,
Principal (P) = $5550
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) = $5550 × 6% × 9
= $5550 ×6/100 × 9
= 5550 × 6 × 9/100
= 33300 × 9/100
= 299700/100
= $2997
Thus, Simple Interest = $2997
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 = $5550 + $2997
= $8547
Thus, Amount to be paid = $8547 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 = $5550
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 9 years
Thus, Amount (A)
= $5550 + ($5550 × 6% × 9)
= $5550 + ($5550 ×6/100 × 9)
= $5550 + (5550 × 6 × 9/100)
= $5550 + (33300 × 9/100)
= $5550 + (299700/100)
= $5550 + $2997 = $8547
Thus, Amount (A) to be paid = $8547 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 $5550, the simple interest in 1 year
= 6/100 × 5550
= 6 × 5550/100
= 33300/100 = $333
Thus, simple interest for 1 year = $333
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $333 × 9 = $2997
Thus, Simple Interest (SI) = $2997
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5550 + $2997
= $8547
Thus, Amount to be paid = $8547 Answer
Similar Questions
(1) What amount does Christopher have to pay after 6 years if he takes a loan of $4000 at 9% simple interest?
(2) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 2% simple interest.
(3) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $7700 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 8% simple interest.
(5) Anthony took a loan of $6600 at the rate of 9% simple interest per annum. If he paid an amount of $10164 to clear the loan, then find the time period of the loan.
(6) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 3% simple interest?
(7) Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $8145 to clear the loan, then find the time period of the loan.
(8) Sandra had to pay $4984 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(9) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 2% simple interest.
(10) Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $10164 to clear the loan, then find the time period of the loan.