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) Find the amount to be paid if William borrowed a sum of $5500 at 2% simple interest for 7 years.
(2) Find the amount to be paid if Richard borrowed a sum of $5600 at 10% simple interest for 8 years.
(3) Calculate the amount due after 9 years if Susan borrowed a sum of $5650 at a rate of 4% simple interest.
(4) How much loan did Sharon borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9687.5 to clear it?
(5) How much loan did Steven borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8250 to clear it?
(6) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 8% simple interest?
(7) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 2% simple interest?
(8) Calculate the amount due if Robert borrowed a sum of $3100 at 6% simple interest for 4 years.
(9) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 9% simple interest?
(10) Charles took a loan of $5800 at the rate of 10% simple interest per annum. If he paid an amount of $11600 to clear the loan, then find the time period of the loan.