Question:
( 2 of 10 ) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 9% simple interest.
(A) 258.39 km
(B) 215.33 km
(C) 172.26 km
(D) 137.81 km
You selected
$5750
Correct Answer
$10407.5
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 9% × 9
= $5750 ×9/100 × 9
= 5750 × 9 × 9/100
= 51750 × 9/100
= 465750/100
= $4657.5
Thus, Simple Interest = $4657.5
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 = $5750 + $4657.5
= $10407.5
Thus, Amount to be paid = $10407.5 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 = $5750
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 9 years
Thus, Amount (A)
= $5750 + ($5750 × 9% × 9)
= $5750 + ($5750 ×9/100 × 9)
= $5750 + (5750 × 9 × 9/100)
= $5750 + (51750 × 9/100)
= $5750 + (465750/100)
= $5750 + $4657.5 = $10407.5
Thus, Amount (A) to be paid = $10407.5 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 $5750, the simple interest in 1 year
= 9/100 × 5750
= 9 × 5750/100
= 51750/100 = $517.5
Thus, simple interest for 1 year = $517.5
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $517.5 × 9 = $4657.5
Thus, Simple Interest (SI) = $4657.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $4657.5
= $10407.5
Thus, Amount to be paid = $10407.5 Answer
Similar Questions
(1) Find the amount to be paid if Christopher borrowed a sum of $6000 at 3% simple interest for 8 years.
(2) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 10% simple interest?
(3) James took a loan of $4000 at the rate of 7% simple interest per annum. If he paid an amount of $5680 to clear the loan, then find the time period of the loan.
(4) How much loan did Sharon borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9687.5 to clear it?
(5) Mark took a loan of $6800 at the rate of 10% simple interest per annum. If he paid an amount of $12240 to clear the loan, then find the time period of the loan.
(6) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 6% simple interest?
(7) In how much time a principal of $3000 will amount to $3240 at a simple interest of 4% per annum?
(8) Find the amount to be paid if Sarah borrowed a sum of $5850 at 8% simple interest for 8 years.
(9) Calculate the amount due after 9 years if Elizabeth borrowed a sum of $5450 at a rate of 2% simple interest.
(10) Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $7616 to clear the loan, then find the time period of the loan.