Question:
Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 5% simple interest.
Correct Answer
$8025
Solution And Explanation
Solution
Given,
Principal (P) = $5350
Rate of Simple Interest (SI) = 5%
Time (t) = 10 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 5% simple interest means, Rate of Simple Interest (SI) is 5% 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) = $5350 × 5% × 10
= $5350 ×5/100 × 10
= 5350 × 5 × 10/100
= 26750 × 10/100
= 267500/100
= $2675
Thus, Simple Interest = $2675
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 = $5350 + $2675
= $8025
Thus, Amount to be paid = $8025 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 = $5350
Rate of Simple Interest (SI) or (R) = 5%
And, Time (t) = 10 years
Thus, Amount (A)
= $5350 + ($5350 × 5% × 10)
= $5350 + ($5350 ×5/100 × 10)
= $5350 + (5350 × 5 × 10/100)
= $5350 + (26750 × 10/100)
= $5350 + (267500/100)
= $5350 + $2675 = $8025
Thus, Amount (A) to be paid = $8025 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 5%
This, means, $5 per $100 per year
∵ For $100, the simple interest for 1 year = $5
∴ For $1, the simple interest for 1 year = 5/100
∴ For $5350, the simple interest in 1 year
= 5/100 × 5350
= 5 × 5350/100
= 26750/100 = $267.5
Thus, simple interest for 1 year = $267.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $267.5 × 10 = $2675
Thus, Simple Interest (SI) = $2675
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $2675
= $8025
Thus, Amount to be paid = $8025 Answer
Similar Questions
(1) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 2% simple interest.
(2) What amount will be due after 2 years if David borrowed a sum of $3200 at a 6% simple interest?
(3) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $10132 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Robert borrowed a sum of $3100 at 8% simple interest for 3 years.
(5) Find the amount to be paid if Richard borrowed a sum of $5600 at 6% simple interest for 8 years.
(6) Find the amount to be paid if Christopher borrowed a sum of $6000 at 4% simple interest for 8 years.
(7) Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $9943 to clear the loan, then find the time period of the loan.
(8) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 10% simple interest for 8 years.
(9) Calculate the amount due if James borrowed a sum of $3000 at 3% simple interest for 3 years.
(10) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 10% simple interest?