Simple Interest
MCQs Math


Question:     Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 4% simple interest.


Correct Answer  $7350

Solution And Explanation

Solution

Given,

Principal (P) = $5250

Rate of Simple Interest (SI) = 4%

Time (t) = 10 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 4% simple interest means, Rate of Simple Interest (SI) is 4% 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) = $5250 × 4% × 10

= $5250 ×4/100 × 10

= 5250 × 4 × 10/100

= 21000 × 10/100

= 210000/100

= $2100

Thus, Simple Interest = $2100

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 = $5250 + $2100

= $7350

Thus, Amount to be paid = $7350 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 = $5250

Rate of Simple Interest (SI) or (R) = 4%

And, Time (t) = 10 years

Thus, Amount (A)

= $5250 + ($5250 × 4% × 10)

= $5250 + ($5250 ×4/100 × 10)

= $5250 + (5250 × 4 × 10/100)

= $5250 + (21000 × 10/100)

= $5250 + (210000/100)

= $5250 + $2100 = $7350

Thus, Amount (A) to be paid = $7350 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 4%

This, means, $4 per $100 per year

∵ For $100, the simple interest for 1 year = $4

∴ For $1, the simple interest for 1 year = 4/100

∴ For $5250, the simple interest in 1 year

= 4/100 × 5250

= 4 × 5250/100

= 21000/100 = $210

Thus, simple interest for 1 year = $210

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $210 × 10 = $2100

Thus, Simple Interest (SI) = $2100

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5250 + $2100

= $7350

Thus, Amount to be paid = $7350 Answer


Similar Questions

(1) Robert took a loan of $4200 at the rate of 9% simple interest per annum. If he paid an amount of $6468 to clear the loan, then find the time period of the loan.

(2) Barbara took a loan of $5100 at the rate of 9% simple interest per annum. If he paid an amount of $9690 to clear the loan, then find the time period of the loan.

(3) Susan took a loan of $5300 at the rate of 6% simple interest per annum. If he paid an amount of $8162 to clear the loan, then find the time period of the loan.

(4) What amount does William have to pay after 5 years if he takes a loan of $3500 at 3% simple interest?

(5) How much loan did Ronald borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8250 to clear it?

(6) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 6% simple interest.

(7) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 10% simple interest?

(8) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 4% simple interest?

(9) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 5% simple interest?

(10) Find the amount to be paid if Sarah borrowed a sum of $5850 at 6% simple interest for 7 years.


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