Question:
( 1 of 10 ) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 3% 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
$5650
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 if Karen borrowed a sum of $3950 at 7% simple interest for 3 years.
(2) Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $9856 to clear the loan, then find the time period of the loan.
(3) Find the amount to be paid if Michael borrowed a sum of $5300 at 5% simple interest for 7 years.
(4) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 3% simple interest.
(5) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 2% simple interest.
(6) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 3% simple interest?
(7) If Andrew paid $5568 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(8) If Richard paid $3888 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(9) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $8008 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 8% simple interest for 3 years.