Question:
Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 3% simple interest.
Correct Answer
$7800
Solution And Explanation
Solution
Given,
Principal (P) = $6000
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) = $6000 × 3% × 10
= $6000 ×3/100 × 10
= 6000 × 3 × 10/100
= 18000 × 10/100
= 180000/100
= $1800
Thus, Simple Interest = $1800
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 = $6000 + $1800
= $7800
Thus, Amount to be paid = $7800 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 = $6000
Rate of Simple Interest (SI) or (R) = 3%
And, Time (t) = 10 years
Thus, Amount (A)
= $6000 + ($6000 × 3% × 10)
= $6000 + ($6000 ×3/100 × 10)
= $6000 + (6000 × 3 × 10/100)
= $6000 + (18000 × 10/100)
= $6000 + (180000/100)
= $6000 + $1800 = $7800
Thus, Amount (A) to be paid = $7800 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 $6000, the simple interest in 1 year
= 3/100 × 6000
= 3 × 6000/100
= 18000/100 = $180
Thus, simple interest for 1 year = $180
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $180 × 10 = $1800
Thus, Simple Interest (SI) = $1800
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $6000 + $1800
= $7800
Thus, Amount to be paid = $7800 Answer
Similar Questions
(1) 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.
(2) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 4% simple interest.
(3) Elizabeth took a loan of $4900 at the rate of 6% simple interest per annum. If he paid an amount of $7840 to clear the loan, then find the time period of the loan.
(4) In how much time a principal of $3100 will amount to $3286 at a simple interest of 2% per annum?
(5) What amount does Christopher have to pay after 6 years if he takes a loan of $4000 at 9% simple interest?
(6) In how much time a principal of $3150 will amount to $3528 at a simple interest of 3% per annum?
(7) Find the amount to be paid if Richard borrowed a sum of $5600 at 5% simple interest for 7 years.
(8) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 9% simple interest?
(9) Calculate the amount due if Mary borrowed a sum of $3050 at 6% simple interest for 4 years.
(10) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 10% simple interest.