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) Calculate the amount due if John borrowed a sum of $3200 at 7% simple interest for 4 years.
(2) Mary had to pay $3416 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(3) Calculate the amount due if David borrowed a sum of $3400 at 10% simple interest for 3 years.
(4) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 10% simple interest?
(5) How much loan did Stephanie borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8682.5 to clear it?
(6) Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 3% simple interest.
(7) What amount does John have to pay after 5 years if he takes a loan of $3200 at 6% simple interest?
(8) Find the amount to be paid if Patricia borrowed a sum of $5150 at 6% simple interest for 7 years.
(9) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $10106 to clear the loan, then find the time period of the loan.
(10) If Anthony paid $4816 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.