Question:
Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 8% simple interest.
Correct Answer
$10148
Solution And Explanation
Solution
Given,
Principal (P) = $5900
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) = $5900 × 8% × 9
= $5900 ×8/100 × 9
= 5900 × 8 × 9/100
= 47200 × 9/100
= 424800/100
= $4248
Thus, Simple Interest = $4248
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 = $5900 + $4248
= $10148
Thus, Amount to be paid = $10148 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 = $5900
Rate of Simple Interest (SI) or (R) = 8%
And, Time (t) = 9 years
Thus, Amount (A)
= $5900 + ($5900 × 8% × 9)
= $5900 + ($5900 ×8/100 × 9)
= $5900 + (5900 × 8 × 9/100)
= $5900 + (47200 × 9/100)
= $5900 + (424800/100)
= $5900 + $4248 = $10148
Thus, Amount (A) to be paid = $10148 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 $5900, the simple interest in 1 year
= 8/100 × 5900
= 8 × 5900/100
= 47200/100 = $472
Thus, simple interest for 1 year = $472
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $472 × 9 = $4248
Thus, Simple Interest (SI) = $4248
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5900 + $4248
= $10148
Thus, Amount to be paid = $10148 Answer
Similar Questions
(1) Find the amount to be paid if Robert borrowed a sum of $5100 at 6% simple interest for 7 years.
(2) Calculate the amount due if James borrowed a sum of $3000 at 7% simple interest for 3 years.
(3) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 4% simple interest.
(4) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $6708 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Robert borrowed a sum of $5100 at 8% simple interest for 8 years.
(6) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 9% simple interest.
(7) If Patricia paid $3528 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(8) Jessica took a loan of $5500 at the rate of 9% simple interest per annum. If he paid an amount of $8470 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 8% simple interest.
(10) Elizabeth took a loan of $4900 at the rate of 6% simple interest per annum. If he paid an amount of $6958 to clear the loan, then find the time period of the loan.