Question:
Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 2% simple interest.
Correct Answer
$6960
Solution And Explanation
Solution
Given,
Principal (P) = $5800
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) = $5800 × 2% × 10
= $5800 ×2/100 × 10
= 5800 × 2 × 10/100
= 11600 × 10/100
= 116000/100
= $1160
Thus, Simple Interest = $1160
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 + $1160
= $6960
Thus, Amount to be paid = $6960 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) = 2%
And, Time (t) = 10 years
Thus, Amount (A)
= $5800 + ($5800 × 2% × 10)
= $5800 + ($5800 ×2/100 × 10)
= $5800 + (5800 × 2 × 10/100)
= $5800 + (11600 × 10/100)
= $5800 + (116000/100)
= $5800 + $1160 = $6960
Thus, Amount (A) to be paid = $6960 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 $5800, the simple interest in 1 year
= 2/100 × 5800
= 2 × 5800/100
= 11600/100 = $116
Thus, simple interest for 1 year = $116
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $116 × 10 = $1160
Thus, Simple Interest (SI) = $1160
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5800 + $1160
= $6960
Thus, Amount to be paid = $6960 Answer
Similar Questions
(1) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 3% simple interest?
(2) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 6% simple interest?
(3) Calculate the amount due if Joseph borrowed a sum of $3700 at 3% simple interest for 3 years.
(4) Mark had to pay $4664 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(5) Find the amount to be paid if John borrowed a sum of $5200 at 9% simple interest for 8 years.
(6) Anthony had to pay $4687 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(7) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 4% simple interest for 3 years.
(8) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 3% simple interest.
(9) Barbara took a loan of $5100 at the rate of 8% simple interest per annum. If he paid an amount of $8364 to clear the loan, then find the time period of the loan.
(10) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $10318 to clear the loan, then find the time period of the loan.