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) Calculate the amount due if David borrowed a sum of $3400 at 3% simple interest for 4 years.
(2) Find the amount to be paid if Mary borrowed a sum of $5050 at 9% simple interest for 7 years.
(3) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 8% simple interest?
(4) If Nancy paid $4814 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(5) Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $7992 to clear the loan, then find the time period of the loan.
(6) Find the amount to be paid if Christopher borrowed a sum of $6000 at 3% simple interest for 8 years.
(7) Calculate the amount due if Susan borrowed a sum of $3650 at 7% simple interest for 4 years.
(8) If Patricia paid $3654 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 5% simple interest?
(10) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 5% simple interest.