Question:
( 1 of 10 ) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 7% simple interest.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$5150
Correct Answer
$8394.5
Solution And Explanation
Solution
Given,
Principal (P) = $5150
Rate of Simple Interest (SI) = 7%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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) = $5150 × 7% × 9
= $5150 ×7/100 × 9
= 5150 × 7 × 9/100
= 36050 × 9/100
= 324450/100
= $3244.5
Thus, Simple Interest = $3244.5
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 = $5150 + $3244.5
= $8394.5
Thus, Amount to be paid = $8394.5 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 = $5150
Rate of Simple Interest (SI) or (R) = 7%
And, Time (t) = 9 years
Thus, Amount (A)
= $5150 + ($5150 × 7% × 9)
= $5150 + ($5150 ×7/100 × 9)
= $5150 + (5150 × 7 × 9/100)
= $5150 + (36050 × 9/100)
= $5150 + (324450/100)
= $5150 + $3244.5 = $8394.5
Thus, Amount (A) to be paid = $8394.5 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 7%
This, means, $7 per $100 per year
∵ For $100, the simple interest for 1 year = $7
∴ For $1, the simple interest for 1 year = 7/100
∴ For $5150, the simple interest in 1 year
= 7/100 × 5150
= 7 × 5150/100
= 36050/100 = $360.5
Thus, simple interest for 1 year = $360.5
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $360.5 × 9 = $3244.5
Thus, Simple Interest (SI) = $3244.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5150 + $3244.5
= $8394.5
Thus, Amount to be paid = $8394.5 Answer
Similar Questions
(1) Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $12160 to clear the loan, then find the time period of the loan.
(2) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 6% simple interest?
(3) What amount does James have to pay after 5 years if he takes a loan of $3000 at 2% simple interest?
(4) How much loan did Charles borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7375 to clear it?
(5) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 6% simple interest?
(6) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $12127 to clear the loan, then find the time period of the loan.
(7) Find the amount to be paid if Jessica borrowed a sum of $5750 at 5% simple interest for 8 years.
(8) Calculate the amount due if Jessica borrowed a sum of $3750 at 6% simple interest for 4 years.
(9) In how much time a principal of $3150 will amount to $3465 at a simple interest of 2% per annum?
(10) Jennifer had to pay $3445 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.