Question:
Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 3% simple interest.
Correct Answer
$7345
Solution And Explanation
Solution
Given,
Principal (P) = $5650
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) = $5650 × 3% × 10
= $5650 ×3/100 × 10
= 5650 × 3 × 10/100
= 16950 × 10/100
= 169500/100
= $1695
Thus, Simple Interest = $1695
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 = $5650 + $1695
= $7345
Thus, Amount to be paid = $7345 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 = $5650
Rate of Simple Interest (SI) or (R) = 3%
And, Time (t) = 10 years
Thus, Amount (A)
= $5650 + ($5650 × 3% × 10)
= $5650 + ($5650 ×3/100 × 10)
= $5650 + (5650 × 3 × 10/100)
= $5650 + (16950 × 10/100)
= $5650 + (169500/100)
= $5650 + $1695 = $7345
Thus, Amount (A) to be paid = $7345 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 $5650, the simple interest in 1 year
= 3/100 × 5650
= 3 × 5650/100
= 16950/100 = $169.5
Thus, simple interest for 1 year = $169.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $169.5 × 10 = $1695
Thus, Simple Interest (SI) = $1695
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5650 + $1695
= $7345
Thus, Amount to be paid = $7345 Answer
Similar Questions
(1) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 5% simple interest.
(2) How much loan did Laura borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9420 to clear it?
(3) Calculate the amount due after 10 years if Karen borrowed a sum of $5950 at a rate of 2% simple interest.
(4) In how much time a principal of $3150 will amount to $3528 at a simple interest of 4% per annum?
(5) Find the amount to be paid if William borrowed a sum of $5500 at 2% simple interest for 8 years.
(6) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 7% simple interest?
(7) Jessica had to pay $3975 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(8) James took a loan of $4000 at the rate of 10% simple interest per annum. If he paid an amount of $6800 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if James borrowed a sum of $5000 at 3% simple interest for 8 years.
(10) Find the amount to be paid if Patricia borrowed a sum of $5150 at 3% simple interest for 7 years.