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) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $5964 to clear the loan, then find the time period of the loan.
(2) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 5% simple interest?
(3) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 7% simple interest for 8 years.
(4) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 9% simple interest.
(5) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 10% simple interest?
(6) If Richard borrowed $3600 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(7) Paul had to pay $5264 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(8) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 5% simple interest?
(9) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 2% simple interest.
(10) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $7488 to clear the loan, then find the time period of the loan.