Question:
Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 6% simple interest.
Correct Answer
$8624
Solution And Explanation
Solution
Given,
Principal (P) = $5600
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) = $5600 × 6% × 9
= $5600 ×6/100 × 9
= 5600 × 6 × 9/100
= 33600 × 9/100
= 302400/100
= $3024
Thus, Simple Interest = $3024
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 = $5600 + $3024
= $8624
Thus, Amount to be paid = $8624 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 = $5600
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 9 years
Thus, Amount (A)
= $5600 + ($5600 × 6% × 9)
= $5600 + ($5600 ×6/100 × 9)
= $5600 + (5600 × 6 × 9/100)
= $5600 + (33600 × 9/100)
= $5600 + (302400/100)
= $5600 + $3024 = $8624
Thus, Amount (A) to be paid = $8624 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 $5600, the simple interest in 1 year
= 6/100 × 5600
= 6 × 5600/100
= 33600/100 = $336
Thus, simple interest for 1 year = $336
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $336 × 9 = $3024
Thus, Simple Interest (SI) = $3024
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5600 + $3024
= $8624
Thus, Amount to be paid = $8624 Answer
Similar Questions
(1) Calculate the amount due if Robert borrowed a sum of $3100 at 10% simple interest for 4 years.
(2) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 7% simple interest?
(3) Barbara took a loan of $5100 at the rate of 9% simple interest per annum. If he paid an amount of $9690 to clear the loan, then find the time period of the loan.
(4) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $8160 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Thomas borrowed a sum of $5800 at 10% simple interest for 8 years.
(6) Calculate the amount due if Barbara borrowed a sum of $3550 at 7% simple interest for 3 years.
(7) If Michael paid $3960 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(8) Calculate the amount due after 9 years if Elizabeth borrowed a sum of $5450 at a rate of 10% simple interest.
(9) Margaret had to pay $4872 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(10) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 7% simple interest?