Question:
Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 10% simple interest.
Correct Answer
$10070
Solution And Explanation
Solution
Given,
Principal (P) = $5300
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) = $5300 × 10% × 9
= $5300 ×10/100 × 9
= 5300 × 10 × 9/100
= 53000 × 9/100
= 477000/100
= $4770
Thus, Simple Interest = $4770
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 + $4770
= $10070
Thus, Amount to be paid = $10070 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) = 10%
And, Time (t) = 9 years
Thus, Amount (A)
= $5300 + ($5300 × 10% × 9)
= $5300 + ($5300 ×10/100 × 9)
= $5300 + (5300 × 10 × 9/100)
= $5300 + (53000 × 9/100)
= $5300 + (477000/100)
= $5300 + $4770 = $10070
Thus, Amount (A) to be paid = $10070 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 $5300, the simple interest in 1 year
= 10/100 × 5300
= 10 × 5300/100
= 53000/100 = $530
Thus, simple interest for 1 year = $530
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $530 × 9 = $4770
Thus, Simple Interest (SI) = $4770
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5300 + $4770
= $10070
Thus, Amount to be paid = $10070 Answer
Similar Questions
(1) Calculate the amount due if James borrowed a sum of $3000 at 9% simple interest for 4 years.
(2) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(3) Calculate the amount due if Susan borrowed a sum of $3650 at 4% simple interest for 3 years.
(4) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 5% simple interest?
(5) Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $6930 to clear the loan, then find the time period of the loan.
(6) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 9% simple interest?
(7) Calculate the amount due if Richard borrowed a sum of $3600 at 8% simple interest for 4 years.
(8) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 6% simple interest for 8 years.
(9) What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 2% simple interest?
(10) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 6% simple interest?