Question:
Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 9% simple interest.
Correct Answer
$9502.5
Solution And Explanation
Solution
Given,
Principal (P) = $5250
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) = $5250 × 9% × 9
= $5250 ×9/100 × 9
= 5250 × 9 × 9/100
= 47250 × 9/100
= 425250/100
= $4252.5
Thus, Simple Interest = $4252.5
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 = $5250 + $4252.5
= $9502.5
Thus, Amount to be paid = $9502.5 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 = $5250
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 9 years
Thus, Amount (A)
= $5250 + ($5250 × 9% × 9)
= $5250 + ($5250 ×9/100 × 9)
= $5250 + (5250 × 9 × 9/100)
= $5250 + (47250 × 9/100)
= $5250 + (425250/100)
= $5250 + $4252.5 = $9502.5
Thus, Amount (A) to be paid = $9502.5 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 $5250, the simple interest in 1 year
= 9/100 × 5250
= 9 × 5250/100
= 47250/100 = $472.5
Thus, simple interest for 1 year = $472.5
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $472.5 × 9 = $4252.5
Thus, Simple Interest (SI) = $4252.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5250 + $4252.5
= $9502.5
Thus, Amount to be paid = $9502.5 Answer
Similar Questions
(1) Linda took a loan of $4700 at the rate of 6% simple interest per annum. If he paid an amount of $6674 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if David borrowed a sum of $5400 at 6% simple interest for 8 years.
(3) Calculate the amount due if Barbara borrowed a sum of $3550 at 10% simple interest for 3 years.
(4) Calculate the amount due if Linda borrowed a sum of $3350 at 8% simple interest for 3 years.
(5) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 5% simple interest.
(6) Find the amount to be paid if William borrowed a sum of $5500 at 3% simple interest for 8 years.
(7) Christopher had to pay $4240 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(8) How much loan did Michael borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $5830 to clear it?
(9) Kenneth had to pay $5300 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(10) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 8% simple interest?