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 Patricia borrowed a sum of $3150 at 8% simple interest for 4 years.
(2) If Mary paid $3538 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(3) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 9% simple interest.
(4) Anthony took a loan of $6600 at the rate of 8% simple interest per annum. If he paid an amount of $11880 to clear the loan, then find the time period of the loan.
(5) In how much time a principal of $3000 will amount to $3600 at a simple interest of 5% per annum?
(6) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 7% simple interest?
(7) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 7% simple interest?
(8) Calculate the amount due after 10 years if Richard borrowed a sum of $5600 at a rate of 2% simple interest.
(9) If Robert paid $3720 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(10) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $6622 to clear the loan, then find the time period of the loan.