Question:
Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 10% simple interest.
Correct Answer
$11305
Solution And Explanation
Solution
Given,
Principal (P) = $5950
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) = $5950 × 10% × 9
= $5950 ×10/100 × 9
= 5950 × 10 × 9/100
= 59500 × 9/100
= 535500/100
= $5355
Thus, Simple Interest = $5355
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 = $5950 + $5355
= $11305
Thus, Amount to be paid = $11305 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 = $5950
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 9 years
Thus, Amount (A)
= $5950 + ($5950 × 10% × 9)
= $5950 + ($5950 ×10/100 × 9)
= $5950 + (5950 × 10 × 9/100)
= $5950 + (59500 × 9/100)
= $5950 + (535500/100)
= $5950 + $5355 = $11305
Thus, Amount (A) to be paid = $11305 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 $5950, the simple interest in 1 year
= 10/100 × 5950
= 10 × 5950/100
= 59500/100 = $595
Thus, simple interest for 1 year = $595
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $595 × 9 = $5355
Thus, Simple Interest (SI) = $5355
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5950 + $5355
= $11305
Thus, Amount to be paid = $11305 Answer
Similar Questions
(1) Find the amount to be paid if James borrowed a sum of $5000 at 9% simple interest for 8 years.
(2) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 5% simple interest.
(3) Find the amount to be paid if Mary borrowed a sum of $5050 at 7% simple interest for 8 years.
(4) Find the amount to be paid if David borrowed a sum of $5400 at 5% simple interest for 8 years.
(5) Find the amount to be paid if John borrowed a sum of $5200 at 5% simple interest for 7 years.
(6) How much loan did Kimberly borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7315 to clear it?
(7) Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $9856 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 2% simple interest.
(9) What amount will be due after 2 years if Mark borrowed a sum of $3700 at a 6% simple interest?
(10) If Robert paid $3596 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.