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) 4 47/50 Or, 247/50
(B) 8 47/50 Or, 447/50
(C) 4 141/50 Or, 341/50
(D) 4 94/50 Or, 294/50
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) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 5% simple interest?
(2) How much loan did Dorothy borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7975 to clear it?
(3) How much loan did Linda borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6687.5 to clear it?
(4) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 10% simple interest.
(5) Jessica took a loan of $5500 at the rate of 9% simple interest per annum. If he paid an amount of $8965 to clear the loan, then find the time period of the loan.
(6) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $9440 to clear the loan, then find the time period of the loan.
(7) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $8740 to clear the loan, then find the time period of the loan.
(8) If Christopher paid $4640 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) Calculate the amount due if Joseph borrowed a sum of $3700 at 5% simple interest for 4 years.
(10) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 5% simple interest.