Question:
Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 7% simple interest.
Correct Answer
$8639
Solution And Explanation
Solution
Given,
Principal (P) = $5300
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) = $5300 × 7% × 9
= $5300 ×7/100 × 9
= 5300 × 7 × 9/100
= 37100 × 9/100
= 333900/100
= $3339
Thus, Simple Interest = $3339
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 = $5300 + $3339
= $8639
Thus, Amount to be paid = $8639 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 = $5300
Rate of Simple Interest (SI) or (R) = 7%
And, Time (t) = 9 years
Thus, Amount (A)
= $5300 + ($5300 × 7% × 9)
= $5300 + ($5300 ×7/100 × 9)
= $5300 + (5300 × 7 × 9/100)
= $5300 + (37100 × 9/100)
= $5300 + (333900/100)
= $5300 + $3339 = $8639
Thus, Amount (A) to be paid = $8639 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 $5300, the simple interest in 1 year
= 7/100 × 5300
= 7 × 5300/100
= 37100/100 = $371
Thus, simple interest for 1 year = $371
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $371 × 9 = $3339
Thus, Simple Interest (SI) = $3339
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5300 + $3339
= $8639
Thus, Amount to be paid = $8639 Answer
Similar Questions
(1) Find the amount to be paid if Joseph borrowed a sum of $5700 at 4% simple interest for 7 years.
(2) Calculate the amount due if Patricia borrowed a sum of $3150 at 2% simple interest for 4 years.
(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) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 4% simple interest.
(5) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 10% simple interest?
(6) If Linda paid $3752 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(7) Elizabeth took a loan of $4900 at the rate of 8% simple interest per annum. If he paid an amount of $7252 to clear the loan, then find the time period of the loan.
(8) Susan took a loan of $5300 at the rate of 10% simple interest per annum. If he paid an amount of $10600 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due if Jennifer borrowed a sum of $3250 at 6% simple interest for 3 years.
(10) Thomas took a loan of $5600 at the rate of 10% simple interest per annum. If he paid an amount of $8960 to clear the loan, then find the time period of the loan.