Question:
( 2 of 10 ) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 10% simple interest.
(A) 212 2/3% या 212.67%
(B) 318 2/3% या 318.67%
(C) 106 2/3% या 106.67%
(D) 53 2/3% या 53.67%
You selected
$5100
Correct Answer
$9690
Solution And Explanation
Solution
Given,
Principal (P) = $5100
Rate of Simple Interest (SI) = 10%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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) = $5100 × 10% × 9
= $5100 ×10/100 × 9
= 5100 × 10 × 9/100
= 51000 × 9/100
= 459000/100
= $4590
Thus, Simple Interest = $4590
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 = $5100 + $4590
= $9690
Thus, Amount to be paid = $9690 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 = $5100
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 9 years
Thus, Amount (A)
= $5100 + ($5100 × 10% × 9)
= $5100 + ($5100 ×10/100 × 9)
= $5100 + (5100 × 10 × 9/100)
= $5100 + (51000 × 9/100)
= $5100 + (459000/100)
= $5100 + $4590 = $9690
Thus, Amount (A) to be paid = $9690 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $5100, the simple interest in 1 year
= 10/100 × 5100
= 10 × 5100/100
= 51000/100 = $510
Thus, simple interest for 1 year = $510
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $510 × 9 = $4590
Thus, Simple Interest (SI) = $4590
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5100 + $4590
= $9690
Thus, Amount to be paid = $9690 Answer
Similar Questions
(1) If Donald paid $5040 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(2) If Sandra paid $4984 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(3) If Mark paid $4928 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(4) Mary took a loan of $4100 at the rate of 6% simple interest per annum. If he paid an amount of $6560 to clear the loan, then find the time period of the loan.
(5) Christopher took a loan of $6000 at the rate of 6% simple interest per annum. If he paid an amount of $9600 to clear the loan, then find the time period of the loan.
(6) What amount does David have to pay after 6 years if he takes a loan of $3400 at 5% simple interest?
(7) Calculate the amount due if Thomas borrowed a sum of $3800 at 4% simple interest for 3 years.
(8) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $10440 to clear the loan, then find the time period of the loan.
(9) Donna had to pay $5577.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(10) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 6% simple interest.