Question:
Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 6% simple interest.
Correct Answer
$9163
Solution And Explanation
Solution
Given,
Principal (P) = $5950
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) = $5950 × 6% × 9
= $5950 ×6/100 × 9
= 5950 × 6 × 9/100
= 35700 × 9/100
= 321300/100
= $3213
Thus, Simple Interest = $3213
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 = $5950 + $3213
= $9163
Thus, Amount to be paid = $9163 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 = $5950
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 9 years
Thus, Amount (A)
= $5950 + ($5950 × 6% × 9)
= $5950 + ($5950 ×6/100 × 9)
= $5950 + (5950 × 6 × 9/100)
= $5950 + (35700 × 9/100)
= $5950 + (321300/100)
= $5950 + $3213 = $9163
Thus, Amount (A) to be paid = $9163 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 $5950, the simple interest in 1 year
= 6/100 × 5950
= 6 × 5950/100
= 35700/100 = $357
Thus, simple interest for 1 year = $357
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $357 × 9 = $3213
Thus, Simple Interest (SI) = $3213
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5950 + $3213
= $9163
Thus, Amount to be paid = $9163 Answer
Similar Questions
(1) Calculate the amount due if Richard borrowed a sum of $3600 at 8% simple interest for 3 years.
(2) Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $8094 to clear the loan, then find the time period of the loan.
(3) David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $7824 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Karen borrowed a sum of $5950 at 3% simple interest for 7 years.
(5) Find the amount to be paid if Jessica borrowed a sum of $5750 at 7% simple interest for 8 years.
(6) How much loan did Robert borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6375 to clear it?
(7) Calculate the amount due if David borrowed a sum of $3400 at 10% simple interest for 3 years.
(8) Find the amount to be paid if William borrowed a sum of $5500 at 2% simple interest for 7 years.
(9) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 2% simple interest for 4 years.
(10) If Linda paid $3886 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.