Question:
Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 6% simple interest.
Correct Answer
$8400
Solution And Explanation
Solution
Given,
Principal (P) = $5250
Rate of Simple Interest (SI) = 6%
Time (t) = 10 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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 × 6% × 10
= $5250 ×6/100 × 10
= 5250 × 6 × 10/100
= 31500 × 10/100
= 315000/100
= $3150
Thus, Simple Interest = $3150
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 + $3150
= $8400
Thus, Amount to be paid = $8400 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) = 6%
And, Time (t) = 10 years
Thus, Amount (A)
= $5250 + ($5250 × 6% × 10)
= $5250 + ($5250 ×6/100 × 10)
= $5250 + (5250 × 6 × 10/100)
= $5250 + (31500 × 10/100)
= $5250 + (315000/100)
= $5250 + $3150 = $8400
Thus, Amount (A) to be paid = $8400 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $5250, the simple interest in 1 year
= 6/100 × 5250
= 6 × 5250/100
= 31500/100 = $315
Thus, simple interest for 1 year = $315
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $315 × 10 = $3150
Thus, Simple Interest (SI) = $3150
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5250 + $3150
= $8400
Thus, Amount to be paid = $8400 Answer
Similar Questions
(1) Calculate the amount due if Charles borrowed a sum of $3900 at 7% simple interest for 3 years.
(2) Anthony took a loan of $6600 at the rate of 9% simple interest per annum. If he paid an amount of $10758 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due if Joseph borrowed a sum of $3700 at 5% simple interest for 4 years.
(4) Steven had to pay $5152 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(5) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 7% simple interest.
(6) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $10498 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due if Susan borrowed a sum of $3650 at 4% simple interest for 3 years.
(8) James took a loan of $4000 at the rate of 10% simple interest per annum. If he paid an amount of $6800 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 5% simple interest.
(10) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 8% simple interest?