Question:
Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 4% simple interest.
Correct Answer
$8260
Solution And Explanation
Solution
Given,
Principal (P) = $5900
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) = $5900 × 4% × 10
= $5900 ×4/100 × 10
= 5900 × 4 × 10/100
= 23600 × 10/100
= 236000/100
= $2360
Thus, Simple Interest = $2360
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 = $5900 + $2360
= $8260
Thus, Amount to be paid = $8260 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 = $5900
Rate of Simple Interest (SI) or (R) = 4%
And, Time (t) = 10 years
Thus, Amount (A)
= $5900 + ($5900 × 4% × 10)
= $5900 + ($5900 ×4/100 × 10)
= $5900 + (5900 × 4 × 10/100)
= $5900 + (23600 × 10/100)
= $5900 + (236000/100)
= $5900 + $2360 = $8260
Thus, Amount (A) to be paid = $8260 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 $5900, the simple interest in 1 year
= 4/100 × 5900
= 4 × 5900/100
= 23600/100 = $236
Thus, simple interest for 1 year = $236
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $236 × 10 = $2360
Thus, Simple Interest (SI) = $2360
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5900 + $2360
= $8260
Thus, Amount to be paid = $8260 Answer
Similar Questions
(1) Mark took a loan of $6800 at the rate of 10% simple interest per annum. If he paid an amount of $11560 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due if Barbara borrowed a sum of $3550 at 8% simple interest for 4 years.
(3) Betty took a loan of $6500 at the rate of 8% simple interest per annum. If he paid an amount of $11700 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 5% simple interest.
(5) Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $9472 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 10% simple interest.
(7) Calculate the amount due if Sarah borrowed a sum of $3850 at 4% simple interest for 4 years.
(8) Thomas took a loan of $5600 at the rate of 8% simple interest per annum. If he paid an amount of $9184 to clear the loan, then find the time period of the loan.
(9) If Mark paid $4928 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(10) Find the amount to be paid if Joseph borrowed a sum of $5700 at 9% simple interest for 7 years.