Simple Interest
MCQs Math


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) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 8% simple interest?

(2) Calculate the amount due after 10 years if Karen borrowed a sum of $5950 at a rate of 2% simple interest.

(3) If David borrowed $3400 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(4) If Kimberly paid $5208 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(5) Richard took a loan of $5200 at the rate of 8% simple interest per annum. If he paid an amount of $8112 to clear the loan, then find the time period of the loan.

(6) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 7% simple interest?

(7) Margaret took a loan of $6700 at the rate of 10% simple interest per annum. If he paid an amount of $13400 to clear the loan, then find the time period of the loan.

(8) Margaret took a loan of $6700 at the rate of 7% simple interest per annum. If he paid an amount of $11390 to clear the loan, then find the time period of the loan.

(9) Calculate the amount due after 9 years if Susan borrowed a sum of $5650 at a rate of 6% simple interest.

(10) Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $9943 to clear the loan, then find the time period of the loan.


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