Question:
Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 4% simple interest.
Correct Answer
$7910
Solution And Explanation
Solution
Given,
Principal (P) = $5650
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) = $5650 × 4% × 10
= $5650 ×4/100 × 10
= 5650 × 4 × 10/100
= 22600 × 10/100
= 226000/100
= $2260
Thus, Simple Interest = $2260
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 + $2260
= $7910
Thus, Amount to be paid = $7910 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) = 4%
And, Time (t) = 10 years
Thus, Amount (A)
= $5650 + ($5650 × 4% × 10)
= $5650 + ($5650 ×4/100 × 10)
= $5650 + (5650 × 4 × 10/100)
= $5650 + (22600 × 10/100)
= $5650 + (226000/100)
= $5650 + $2260 = $7910
Thus, Amount (A) to be paid = $7910 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 $5650, the simple interest in 1 year
= 4/100 × 5650
= 4 × 5650/100
= 22600/100 = $226
Thus, simple interest for 1 year = $226
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $226 × 10 = $2260
Thus, Simple Interest (SI) = $2260
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5650 + $2260
= $7910
Thus, Amount to be paid = $7910 Answer
Similar Questions
(1) Calculate the amount due if Susan borrowed a sum of $3650 at 2% simple interest for 4 years.
(2) How much loan did Mark borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7680 to clear it?
(3) How much loan did David borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6750 to clear it?
(4) Find the amount to be paid if Mary borrowed a sum of $5050 at 6% simple interest for 7 years.
(5) Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $7790 to clear the loan, then find the time period of the loan.
(6) Find the amount to be paid if Jessica borrowed a sum of $5750 at 4% simple interest for 7 years.
(7) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $9656 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if Patricia borrowed a sum of $3150 at 5% simple interest for 4 years.
(9) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $5775 to clear it?
(10) Donald took a loan of $7000 at the rate of 6% simple interest per annum. If he paid an amount of $9520 to clear the loan, then find the time period of the loan.