Question:
Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 7% simple interest.
Correct Answer
$9372.5
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 7% × 9
= $5750 ×7/100 × 9
= 5750 × 7 × 9/100
= 40250 × 9/100
= 362250/100
= $3622.5
Thus, Simple Interest = $3622.5
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 = $5750 + $3622.5
= $9372.5
Thus, Amount to be paid = $9372.5 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 = $5750
Rate of Simple Interest (SI) or (R) = 7%
And, Time (t) = 9 years
Thus, Amount (A)
= $5750 + ($5750 × 7% × 9)
= $5750 + ($5750 ×7/100 × 9)
= $5750 + (5750 × 7 × 9/100)
= $5750 + (40250 × 9/100)
= $5750 + (362250/100)
= $5750 + $3622.5 = $9372.5
Thus, Amount (A) to be paid = $9372.5 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 $5750, the simple interest in 1 year
= 7/100 × 5750
= 7 × 5750/100
= 40250/100 = $402.5
Thus, simple interest for 1 year = $402.5
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $402.5 × 9 = $3622.5
Thus, Simple Interest (SI) = $3622.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $3622.5
= $9372.5
Thus, Amount to be paid = $9372.5 Answer
Similar Questions
(1) If James paid $3360 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(2) Calculate the amount due if Joseph borrowed a sum of $3700 at 10% simple interest for 4 years.
(3) Jessica had to pay $4200 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(4) How much loan did Brian borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8640 to clear it?
(5) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 2% simple interest?
(6) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 9% simple interest for 8 years.
(7) Find the amount to be paid if Patricia borrowed a sum of $5150 at 8% simple interest for 8 years.
(8) If Elizabeth paid $4002 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 2% simple interest?
(10) How much loan did Jason borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9625 to clear it?