Question:
( 1 of 10 ) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 9% simple interest.
(A) 4 47/50 Or, 247/50
(B) 8 47/50 Or, 447/50
(C) 4 141/50 Or, 341/50
(D) 4 94/50 Or, 294/50
You selected
$5850
Correct Answer
$10588.5
Solution And Explanation
Solution
Given,
Principal (P) = $5850
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) = $5850 × 9% × 9
= $5850 ×9/100 × 9
= 5850 × 9 × 9/100
= 52650 × 9/100
= 473850/100
= $4738.5
Thus, Simple Interest = $4738.5
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 = $5850 + $4738.5
= $10588.5
Thus, Amount to be paid = $10588.5 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 = $5850
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 9 years
Thus, Amount (A)
= $5850 + ($5850 × 9% × 9)
= $5850 + ($5850 ×9/100 × 9)
= $5850 + (5850 × 9 × 9/100)
= $5850 + (52650 × 9/100)
= $5850 + (473850/100)
= $5850 + $4738.5 = $10588.5
Thus, Amount (A) to be paid = $10588.5 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 $5850, the simple interest in 1 year
= 9/100 × 5850
= 9 × 5850/100
= 52650/100 = $526.5
Thus, simple interest for 1 year = $526.5
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $526.5 × 9 = $4738.5
Thus, Simple Interest (SI) = $4738.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5850 + $4738.5
= $10588.5
Thus, Amount to be paid = $10588.5 Answer
Similar Questions
(1) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 8% simple interest?
(2) Christopher took a loan of $6000 at the rate of 9% simple interest per annum. If he paid an amount of $10860 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 2% simple interest for 8 years.
(4) Joseph took a loan of $5400 at the rate of 8% simple interest per annum. If he paid an amount of $9288 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if Richard borrowed a sum of $3600 at 8% simple interest for 3 years.
(6) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 4% simple interest?
(7) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 3% simple interest.
(8) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 10% simple interest.
(9) Nancy took a loan of $6300 at the rate of 8% simple interest per annum. If he paid an amount of $9324 to clear the loan, then find the time period of the loan.
(10) Joseph had to pay $4255 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.