Question:
( 1 of 10 ) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 4% simple interest.
(A) 618 1/11% या 618.09%
(B) 927 1/11% या 927.09%
(C) 154 1/11% या 154.09%
(D) 309 1/11% या 309.09%
You selected
$5650
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) Find the amount to be paid if Sarah borrowed a sum of $5850 at 5% simple interest for 7 years.
(2) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 5% simple interest.
(3) 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.
(4) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $10080 to clear the loan, then find the time period of the loan.
(5) What amount will be due after 2 years if James borrowed a sum of $3000 at a 10% simple interest?
(6) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 8% simple interest.
(7) In how much time a principal of $3050 will amount to $3507.5 at a simple interest of 5% per annum?
(8) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 10% simple interest?
(9) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 9% simple interest?
(10) What amount does Karen have to pay after 5 years if he takes a loan of $3950 at 6% simple interest?