Question:
Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 10% simple interest.
Correct Answer
$11020
Solution And Explanation
Solution
Given,
Principal (P) = $5800
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) = $5800 × 10% × 9
= $5800 ×10/100 × 9
= 5800 × 10 × 9/100
= 58000 × 9/100
= 522000/100
= $5220
Thus, Simple Interest = $5220
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 = $5800 + $5220
= $11020
Thus, Amount to be paid = $11020 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 = $5800
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 9 years
Thus, Amount (A)
= $5800 + ($5800 × 10% × 9)
= $5800 + ($5800 ×10/100 × 9)
= $5800 + (5800 × 10 × 9/100)
= $5800 + (58000 × 9/100)
= $5800 + (522000/100)
= $5800 + $5220 = $11020
Thus, Amount (A) to be paid = $11020 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 $5800, the simple interest in 1 year
= 10/100 × 5800
= 10 × 5800/100
= 58000/100 = $580
Thus, simple interest for 1 year = $580
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $580 × 9 = $5220
Thus, Simple Interest (SI) = $5220
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5800 + $5220
= $11020
Thus, Amount to be paid = $11020 Answer
Similar Questions
(1) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 3% simple interest?
(2) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 10% simple interest.
(3) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 4% simple interest?
(4) Calculate the amount due if Barbara borrowed a sum of $3550 at 3% simple interest for 4 years.
(5) What amount will be due after 2 years if Mark borrowed a sum of $3700 at a 10% simple interest?
(6) What amount will be due after 2 years if David borrowed a sum of $3200 at a 5% simple interest?
(7) John took a loan of $4400 at the rate of 7% simple interest per annum. If he paid an amount of $6864 to clear the loan, then find the time period of the loan.
(8) Find the amount to be paid if Sarah borrowed a sum of $5850 at 3% simple interest for 7 years.
(9) What amount will be due after 2 years if Andrew borrowed a sum of $3900 at a 4% simple interest?
(10) Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 4% simple interest.