Question:
Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 8% simple interest.
Correct Answer
$9030
Solution And Explanation
Solution
Given,
Principal (P) = $5250
Rate of Simple Interest (SI) = 8%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 8% simple interest means, Rate of Simple Interest (SI) is 8% 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) = $5250 × 8% × 9
= $5250 ×8/100 × 9
= 5250 × 8 × 9/100
= 42000 × 9/100
= 378000/100
= $3780
Thus, Simple Interest = $3780
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 = $5250 + $3780
= $9030
Thus, Amount to be paid = $9030 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 = $5250
Rate of Simple Interest (SI) or (R) = 8%
And, Time (t) = 9 years
Thus, Amount (A)
= $5250 + ($5250 × 8% × 9)
= $5250 + ($5250 ×8/100 × 9)
= $5250 + (5250 × 8 × 9/100)
= $5250 + (42000 × 9/100)
= $5250 + (378000/100)
= $5250 + $3780 = $9030
Thus, Amount (A) to be paid = $9030 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 8%
This, means, $8 per $100 per year
∵ For $100, the simple interest for 1 year = $8
∴ For $1, the simple interest for 1 year = 8/100
∴ For $5250, the simple interest in 1 year
= 8/100 × 5250
= 8 × 5250/100
= 42000/100 = $420
Thus, simple interest for 1 year = $420
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $420 × 9 = $3780
Thus, Simple Interest (SI) = $3780
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5250 + $3780
= $9030
Thus, Amount to be paid = $9030 Answer
Similar Questions
(1) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 2% simple interest for 8 years.
(2) Calculate the amount due if James borrowed a sum of $3000 at 3% simple interest for 4 years.
(3) What amount will be due after 2 years if David borrowed a sum of $3200 at a 7% simple interest?
(4) Anthony had to pay $4945 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(5) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 6% simple interest.
(6) If Jessica paid $4200 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(7) In how much time a principal of $3050 will amount to $3355 at a simple interest of 5% per annum?
(8) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 7% simple interest?
(9) Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $11520 to clear the loan, then find the time period of the loan.
(10) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 9% simple interest?