Question:
( 3 of 10 ) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 8% simple interest.
(A) 11 19/46 days or 11.413 days
(B) 22 19/46 days or 22.413 days
(C) 46 days
(D) 23 days
You selected
$5750
Correct Answer
$9890
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 8% × 9
= $5750 ×8/100 × 9
= 5750 × 8 × 9/100
= 46000 × 9/100
= 414000/100
= $4140
Thus, Simple Interest = $4140
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 = $5750 + $4140
= $9890
Thus, Amount to be paid = $9890 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 = $5750
Rate of Simple Interest (SI) or (R) = 8%
And, Time (t) = 9 years
Thus, Amount (A)
= $5750 + ($5750 × 8% × 9)
= $5750 + ($5750 ×8/100 × 9)
= $5750 + (5750 × 8 × 9/100)
= $5750 + (46000 × 9/100)
= $5750 + (414000/100)
= $5750 + $4140 = $9890
Thus, Amount (A) to be paid = $9890 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 $5750, the simple interest in 1 year
= 8/100 × 5750
= 8 × 5750/100
= 46000/100 = $460
Thus, simple interest for 1 year = $460
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $460 × 9 = $4140
Thus, Simple Interest (SI) = $4140
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $4140
= $9890
Thus, Amount to be paid = $9890 Answer
Similar Questions
(1) Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $7421 to clear the loan, then find the time period of the loan.
(2) 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.
(3) Find the amount to be paid if Thomas borrowed a sum of $5800 at 9% simple interest for 7 years.
(4) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 3% simple interest.
(5) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 9% simple interest?
(6) Linda had to pay $3852.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(7) Christopher took a loan of $6000 at the rate of 9% simple interest per annum. If he paid an amount of $10320 to clear the loan, then find the time period of the loan.
(8) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 10% simple interest?
(9) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 2% simple interest.
(10) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 9% simple interest?