Question:
Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 6% simple interest.
Correct Answer
$8932
Solution And Explanation
Solution
Given,
Principal (P) = $5800
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) = $5800 × 6% × 9
= $5800 ×6/100 × 9
= 5800 × 6 × 9/100
= 34800 × 9/100
= 313200/100
= $3132
Thus, Simple Interest = $3132
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 = $5800 + $3132
= $8932
Thus, Amount to be paid = $8932 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 = $5800
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 9 years
Thus, Amount (A)
= $5800 + ($5800 × 6% × 9)
= $5800 + ($5800 ×6/100 × 9)
= $5800 + (5800 × 6 × 9/100)
= $5800 + (34800 × 9/100)
= $5800 + (313200/100)
= $5800 + $3132 = $8932
Thus, Amount (A) to be paid = $8932 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 $5800, the simple interest in 1 year
= 6/100 × 5800
= 6 × 5800/100
= 34800/100 = $348
Thus, simple interest for 1 year = $348
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $348 × 9 = $3132
Thus, Simple Interest (SI) = $3132
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5800 + $3132
= $8932
Thus, Amount to be paid = $8932 Answer
Similar Questions
(1) Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 10% simple interest.
(2) Calculate the amount due if David borrowed a sum of $3400 at 4% simple interest for 4 years.
(3) What amount does William have to pay after 5 years if he takes a loan of $3500 at 3% simple interest?
(4) Calculate the amount due if Patricia borrowed a sum of $3150 at 9% simple interest for 3 years.
(5) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 7% simple interest?
(6) Robert had to pay $3472 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(7) Calculate the amount due if Patricia borrowed a sum of $3150 at 9% simple interest for 4 years.
(8) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 3% simple interest for 4 years.
(9) Find the amount to be paid if Richard borrowed a sum of $5600 at 5% simple interest for 8 years.
(10) Calculate the amount due if Patricia borrowed a sum of $3150 at 6% simple interest for 4 years.