Question:
( 1 of 10 ) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 10% 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
$5750
Correct Answer
$10925
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 10% × 9
= $5750 ×10/100 × 9
= 5750 × 10 × 9/100
= 57500 × 9/100
= 517500/100
= $5175
Thus, Simple Interest = $5175
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 + $5175
= $10925
Thus, Amount to be paid = $10925 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) = 10%
And, Time (t) = 9 years
Thus, Amount (A)
= $5750 + ($5750 × 10% × 9)
= $5750 + ($5750 ×10/100 × 9)
= $5750 + (5750 × 10 × 9/100)
= $5750 + (57500 × 9/100)
= $5750 + (517500/100)
= $5750 + $5175 = $10925
Thus, Amount (A) to be paid = $10925 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 $5750, the simple interest in 1 year
= 10/100 × 5750
= 10 × 5750/100
= 57500/100 = $575
Thus, simple interest for 1 year = $575
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $575 × 9 = $5175
Thus, Simple Interest (SI) = $5175
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $5175
= $10925
Thus, Amount to be paid = $10925 Answer
Similar Questions
(1) In how much time a principal of $3200 will amount to $3456 at a simple interest of 4% per annum?
(2) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6300 to clear it?
(3) Find the amount to be paid if Barbara borrowed a sum of $5550 at 8% simple interest for 7 years.
(4) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 9% simple interest?
(5) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $10540 to clear the loan, then find the time period of the loan.
(6) Nancy took a loan of $6300 at the rate of 8% simple interest per annum. If he paid an amount of $11340 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due if Susan borrowed a sum of $3650 at 2% simple interest for 4 years.
(8) Calculate the amount due if Charles borrowed a sum of $3900 at 2% simple interest for 3 years.
(9) What amount will be due after 2 years if John borrowed a sum of $3100 at a 10% simple interest?
(10) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 7% simple interest.