Question:
Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 8% simple interest.
Correct Answer
$9202
Solution And Explanation
Solution
Given,
Principal (P) = $5350
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) = $5350 × 8% × 9
= $5350 ×8/100 × 9
= 5350 × 8 × 9/100
= 42800 × 9/100
= 385200/100
= $3852
Thus, Simple Interest = $3852
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 = $5350 + $3852
= $9202
Thus, Amount to be paid = $9202 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 = $5350
Rate of Simple Interest (SI) or (R) = 8%
And, Time (t) = 9 years
Thus, Amount (A)
= $5350 + ($5350 × 8% × 9)
= $5350 + ($5350 ×8/100 × 9)
= $5350 + (5350 × 8 × 9/100)
= $5350 + (42800 × 9/100)
= $5350 + (385200/100)
= $5350 + $3852 = $9202
Thus, Amount (A) to be paid = $9202 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 $5350, the simple interest in 1 year
= 8/100 × 5350
= 8 × 5350/100
= 42800/100 = $428
Thus, simple interest for 1 year = $428
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $428 × 9 = $3852
Thus, Simple Interest (SI) = $3852
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $3852
= $9202
Thus, Amount to be paid = $9202 Answer
Similar Questions
(1) What amount does John have to pay after 6 years if he takes a loan of $3200 at 6% simple interest?
(2) Joseph had to pay $4033 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(3) Calculate the amount due after 9 years if Mary borrowed a sum of $5050 at a rate of 9% simple interest.
(4) If Andrew paid $5376 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(5) Calculate the amount due if Christopher borrowed a sum of $4000 at 3% simple interest for 3 years.
(6) In how much time a principal of $3050 will amount to $3294 at a simple interest of 2% per annum?
(7) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 10% simple interest.
(8) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 7% simple interest.
(9) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 6% simple interest.
(10) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 2% simple interest?