Simple Interest
MCQs Math


Question:     Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 8% simple interest.


Correct Answer  $10234

Solution And Explanation

Solution

Given,

Principal (P) = $5950

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) = $5950 × 8% × 9

= $5950 ×8/100 × 9

= 5950 × 8 × 9/100

= 47600 × 9/100

= 428400/100

= $4284

Thus, Simple Interest = $4284

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 = $5950 + $4284

= $10234

Thus, Amount to be paid = $10234 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 = $5950

Rate of Simple Interest (SI) or (R) = 8%

And, Time (t) = 9 years

Thus, Amount (A)

= $5950 + ($5950 × 8% × 9)

= $5950 + ($5950 ×8/100 × 9)

= $5950 + (5950 × 8 × 9/100)

= $5950 + (47600 × 9/100)

= $5950 + (428400/100)

= $5950 + $4284 = $10234

Thus, Amount (A) to be paid = $10234 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 $5950, the simple interest in 1 year

= 8/100 × 5950

= 8 × 5950/100

= 47600/100 = $476

Thus, simple interest for 1 year = $476

Therefore, simple interest for 9 years

= Simple interest for 1 year × 9

= $476 × 9 = $4284

Thus, Simple Interest (SI) = $4284

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5950 + $4284

= $10234

Thus, Amount to be paid = $10234 Answer


Similar Questions

(1) Margaret took a loan of $6700 at the rate of 8% simple interest per annum. If he paid an amount of $9916 to clear the loan, then find the time period of the loan.

(2) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $8100 to clear the loan, then find the time period of the loan.

(3) Calculate the amount due if Robert borrowed a sum of $3100 at 7% simple interest for 3 years.

(4) In how much time a principal of $3000 will amount to $3240 at a simple interest of 4% per annum?

(5) Find the amount to be paid if Robert borrowed a sum of $5100 at 6% simple interest for 7 years.

(6) Calculate the amount due if David borrowed a sum of $3400 at 6% simple interest for 4 years.

(7) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 4% simple interest?

(8) Calculate the amount due if Christopher borrowed a sum of $4000 at 7% simple interest for 4 years.

(9) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 9% simple interest?

(10) Find the amount to be paid if Robert borrowed a sum of $5100 at 7% simple interest for 7 years.


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