Question:
( 3 of 10 ) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 9% simple interest.
(A) 11 19/46 days or 11.413 days
(B) 22 19/46 days or 22.413 days
(C) 46 days
(D) 23 days
You selected
$5400
Correct Answer
$9774
Solution And Explanation
Solution
Given,
Principal (P) = $5400
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) = $5400 × 9% × 9
= $5400 ×9/100 × 9
= 5400 × 9 × 9/100
= 48600 × 9/100
= 437400/100
= $4374
Thus, Simple Interest = $4374
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 = $5400 + $4374
= $9774
Thus, Amount to be paid = $9774 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 = $5400
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 9 years
Thus, Amount (A)
= $5400 + ($5400 × 9% × 9)
= $5400 + ($5400 ×9/100 × 9)
= $5400 + (5400 × 9 × 9/100)
= $5400 + (48600 × 9/100)
= $5400 + (437400/100)
= $5400 + $4374 = $9774
Thus, Amount (A) to be paid = $9774 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 $5400, the simple interest in 1 year
= 9/100 × 5400
= 9 × 5400/100
= 48600/100 = $486
Thus, simple interest for 1 year = $486
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $486 × 9 = $4374
Thus, Simple Interest (SI) = $4374
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5400 + $4374
= $9774
Thus, Amount to be paid = $9774 Answer
Similar Questions
(1) Calculate the amount due if Richard borrowed a sum of $3600 at 6% simple interest for 4 years.
(2) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $5848 to clear the loan, then find the time period of the loan.
(3) Find the amount to be paid if Susan borrowed a sum of $5650 at 10% simple interest for 7 years.
(4) If Patricia paid $3780 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(5) Calculate the amount due if Patricia borrowed a sum of $3150 at 6% simple interest for 3 years.
(6) Nancy had to pay $4648 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(7) What amount does William have to pay after 5 years if he takes a loan of $3500 at 4% simple interest?
(8) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $9840 to clear the loan, then find the time period of the loan.
(9) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $9540 to clear the loan, then find the time period of the loan.
(10) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 9% simple interest?