Question:
Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 3% simple interest.
Correct Answer
$6695
Solution And Explanation
Solution
Given,
Principal (P) = $5150
Rate of Simple Interest (SI) = 3%
Time (t) = 10 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% 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 × 3% × 10
= $5150 ×3/100 × 10
= 5150 × 3 × 10/100
= 15450 × 10/100
= 154500/100
= $1545
Thus, Simple Interest = $1545
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 + $1545
= $6695
Thus, Amount to be paid = $6695 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) = 3%
And, Time (t) = 10 years
Thus, Amount (A)
= $5150 + ($5150 × 3% × 10)
= $5150 + ($5150 ×3/100 × 10)
= $5150 + (5150 × 3 × 10/100)
= $5150 + (15450 × 10/100)
= $5150 + (154500/100)
= $5150 + $1545 = $6695
Thus, Amount (A) to be paid = $6695 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 3%
This, means, $3 per $100 per year
∵ For $100, the simple interest for 1 year = $3
∴ For $1, the simple interest for 1 year = 3/100
∴ For $5150, the simple interest in 1 year
= 3/100 × 5150
= 3 × 5150/100
= 15450/100 = $154.5
Thus, simple interest for 1 year = $154.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $154.5 × 10 = $1545
Thus, Simple Interest (SI) = $1545
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5150 + $1545
= $6695
Thus, Amount to be paid = $6695 Answer
Similar Questions
(1) If John paid $3584 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(2) Find the amount to be paid if Linda borrowed a sum of $5350 at 7% simple interest for 8 years.
(3) Linda took a loan of $4700 at the rate of 7% simple interest per annum. If he paid an amount of $7990 to clear the loan, then find the time period of the loan.
(4) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $8326 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if James borrowed a sum of $3000 at 7% simple interest for 4 years.
(6) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 3% simple interest?
(7) Charles took a loan of $5800 at the rate of 6% simple interest per annum. If he paid an amount of $7888 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 2% simple interest.
(9) If Linda paid $3752 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(10) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 7% simple interest?