Question:
( 1 of 10 ) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 2% 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
$5150
Correct Answer
$6180
Solution And Explanation
Solution
Given,
Principal (P) = $5150
Rate of Simple Interest (SI) = 2%
Time (t) = 10 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 2% simple interest means, Rate of Simple Interest (SI) is 2% 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) = $5150 × 2% × 10
= $5150 ×2/100 × 10
= 5150 × 2 × 10/100
= 10300 × 10/100
= 103000/100
= $1030
Thus, Simple Interest = $1030
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 = $5150 + $1030
= $6180
Thus, Amount to be paid = $6180 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 = $5150
Rate of Simple Interest (SI) or (R) = 2%
And, Time (t) = 10 years
Thus, Amount (A)
= $5150 + ($5150 × 2% × 10)
= $5150 + ($5150 ×2/100 × 10)
= $5150 + (5150 × 2 × 10/100)
= $5150 + (10300 × 10/100)
= $5150 + (103000/100)
= $5150 + $1030 = $6180
Thus, Amount (A) to be paid = $6180 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 2%
This, means, $2 per $100 per year
∵ For $100, the simple interest for 1 year = $2
∴ For $1, the simple interest for 1 year = 2/100
∴ For $5150, the simple interest in 1 year
= 2/100 × 5150
= 2 × 5150/100
= 10300/100 = $103
Thus, simple interest for 1 year = $103
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $103 × 10 = $1030
Thus, Simple Interest (SI) = $1030
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5150 + $1030
= $6180
Thus, Amount to be paid = $6180 Answer
Similar Questions
(1) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $8256 to clear the loan, then find the time period of the loan.
(2) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $10664 to clear the loan, then find the time period of the loan.
(3) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 4% simple interest?
(4) Calculate the amount due if Thomas borrowed a sum of $3800 at 5% simple interest for 4 years.
(5) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 7% simple interest?
(6) Daniel had to pay $4715 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(7) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 10% simple interest?
(8) Jessica had to pay $4312.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(9) How much loan did Timothy borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8140 to clear it?
(10) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 9% simple interest.