Question:
Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 8% simple interest.
Correct Answer
$9116
Solution And Explanation
Solution
Given,
Principal (P) = $5300
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) = $5300 × 8% × 9
= $5300 ×8/100 × 9
= 5300 × 8 × 9/100
= 42400 × 9/100
= 381600/100
= $3816
Thus, Simple Interest = $3816
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 + $3816
= $9116
Thus, Amount to be paid = $9116 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) = 8%
And, Time (t) = 9 years
Thus, Amount (A)
= $5300 + ($5300 × 8% × 9)
= $5300 + ($5300 ×8/100 × 9)
= $5300 + (5300 × 8 × 9/100)
= $5300 + (42400 × 9/100)
= $5300 + (381600/100)
= $5300 + $3816 = $9116
Thus, Amount (A) to be paid = $9116 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 $5300, the simple interest in 1 year
= 8/100 × 5300
= 8 × 5300/100
= 42400/100 = $424
Thus, simple interest for 1 year = $424
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $424 × 9 = $3816
Thus, Simple Interest (SI) = $3816
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5300 + $3816
= $9116
Thus, Amount to be paid = $9116 Answer
Similar Questions
(1) Find the amount to be paid if Michael borrowed a sum of $5300 at 6% simple interest for 8 years.
(2) Find the amount to be paid if Susan borrowed a sum of $5650 at 8% simple interest for 8 years.
(3) What amount will be due after 2 years if Mark borrowed a sum of $3700 at a 9% simple interest?
(4) Find the amount to be paid if Jessica borrowed a sum of $5750 at 6% simple interest for 7 years.
(5) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 10% simple interest?
(6) Calculate the amount due if William borrowed a sum of $3500 at 3% simple interest for 4 years.
(7) What amount does Christopher have to pay after 6 years if he takes a loan of $4000 at 6% simple interest?
(8) If Jessica borrowed $3750 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(9) Find the amount to be paid if Susan borrowed a sum of $5650 at 9% simple interest for 7 years.
(10) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 5% simple interest?