Question:
Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 9% simple interest.
Correct Answer
$9593
Solution And Explanation
Solution
Given,
Principal (P) = $5300
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) = $5300 × 9% × 9
= $5300 ×9/100 × 9
= 5300 × 9 × 9/100
= 47700 × 9/100
= 429300/100
= $4293
Thus, Simple Interest = $4293
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 = $5300 + $4293
= $9593
Thus, Amount to be paid = $9593 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 = $5300
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 9 years
Thus, Amount (A)
= $5300 + ($5300 × 9% × 9)
= $5300 + ($5300 ×9/100 × 9)
= $5300 + (5300 × 9 × 9/100)
= $5300 + (47700 × 9/100)
= $5300 + (429300/100)
= $5300 + $4293 = $9593
Thus, Amount (A) to be paid = $9593 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 $5300, the simple interest in 1 year
= 9/100 × 5300
= 9 × 5300/100
= 47700/100 = $477
Thus, simple interest for 1 year = $477
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $477 × 9 = $4293
Thus, Simple Interest (SI) = $4293
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5300 + $4293
= $9593
Thus, Amount to be paid = $9593 Answer
Similar Questions
(1) Find the amount to be paid if Mary borrowed a sum of $5050 at 3% simple interest for 8 years.
(2) Karen took a loan of $5900 at the rate of 10% simple interest per annum. If he paid an amount of $11210 to clear the loan, then find the time period of the loan.
(3) If Mary paid $3416 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(4) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 2% simple interest?
(5) Charles had to pay $4368 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(6) Find the amount to be paid if Barbara borrowed a sum of $5550 at 3% simple interest for 8 years.
(7) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 5% simple interest.
(8) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 6% simple interest for 7 years.
(9) What amount does Karen have to pay after 6 years if he takes a loan of $3950 at 6% simple interest?
(10) If Kenneth paid $5600 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.