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) Calculate the amount due if John borrowed a sum of $3200 at 9% simple interest for 3 years.
(2) David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $7680 to clear the loan, then find the time period of the loan.
(3) David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $8256 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Jessica borrowed a sum of $3750 at 3% simple interest for 3 years.
(5) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 9% simple interest.
(6) Calculate the amount due after 9 years if Mary borrowed a sum of $5050 at a rate of 10% simple interest.
(7) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $7568 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if David borrowed a sum of $3400 at 7% simple interest for 3 years.
(9) Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $6390 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if Jessica borrowed a sum of $3750 at 2% simple interest for 3 years.