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) How much loan did Brian borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7920 to clear it?
(2) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 9% simple interest?
(3) Barbara took a loan of $5100 at the rate of 6% simple interest per annum. If he paid an amount of $6936 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Michael borrowed a sum of $3300 at 9% simple interest for 3 years.
(5) Calculate the amount due if Joseph borrowed a sum of $3700 at 5% simple interest for 4 years.
(6) William took a loan of $5000 at the rate of 8% simple interest per annum. If he paid an amount of $9000 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due if Thomas borrowed a sum of $3800 at 4% simple interest for 3 years.
(8) Charles took a loan of $5800 at the rate of 6% simple interest per annum. If he paid an amount of $8236 to clear the loan, then find the time period of the loan.
(9) Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $8288 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 5% simple interest.