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) If Patricia borrowed $3150 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(2) How much loan did Kevin borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7810 to clear it?
(3) Thomas took a loan of $5600 at the rate of 7% simple interest per annum. If he paid an amount of $7952 to clear the loan, then find the time period of the loan.
(4) How much loan did Ashley borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7532.5 to clear it?
(5) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $9248 to clear the loan, then find the time period of the loan.
(6) Find the amount to be paid if Susan borrowed a sum of $5650 at 8% simple interest for 8 years.
(7) In how much time a principal of $3200 will amount to $4000 at a simple interest of 5% per annum?
(8) Joseph took a loan of $5400 at the rate of 10% simple interest per annum. If he paid an amount of $10260 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 8% simple interest.
(10) In how much time a principal of $3000 will amount to $3240 at a simple interest of 2% per annum?