Question:
Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 9% simple interest.
Correct Answer
$9050
Solution And Explanation
Solution
Given,
Principal (P) = $5000
Rate of Simple Interest (SI) = 9%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $5000 × 9% × 9
= $5000 ×9/100 × 9
= 5000 × 9 × 9/100
= 45000 × 9/100
= 405000/100
= $4050
Thus, Simple Interest = $4050
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 = $5000 + $4050
= $9050
Thus, Amount to be paid = $9050 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 = $5000
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 9 years
Thus, Amount (A)
= $5000 + ($5000 × 9% × 9)
= $5000 + ($5000 ×9/100 × 9)
= $5000 + (5000 × 9 × 9/100)
= $5000 + (45000 × 9/100)
= $5000 + (405000/100)
= $5000 + $4050 = $9050
Thus, Amount (A) to be paid = $9050 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 9%
This, means, $9 per $100 per year
∵ For $100, the simple interest for 1 year = $9
∴ For $1, the simple interest for 1 year = 9/100
∴ For $5000, the simple interest in 1 year
= 9/100 × 5000
= 9 × 5000/100
= 45000/100 = $450
Thus, simple interest for 1 year = $450
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $450 × 9 = $4050
Thus, Simple Interest (SI) = $4050
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5000 + $4050
= $9050
Thus, Amount to be paid = $9050 Answer
Similar Questions
(1) Find the amount to be paid if John borrowed a sum of $5200 at 4% simple interest for 7 years.
(2) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 3% simple interest.
(3) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 2% simple interest.
(4) Calculate the amount due if Patricia borrowed a sum of $3150 at 2% simple interest for 3 years.
(5) In how much time a principal of $3150 will amount to $3528 at a simple interest of 4% per annum?
(6) If Mark paid $5280 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(7) If Robert paid $3348 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(8) Calculate the amount due if Karen borrowed a sum of $3950 at 3% simple interest for 3 years.
(9) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 10% simple interest?
(10) Ashley had to pay $4959.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.