Question:
Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 6% simple interest.
Correct Answer
$8560
Solution And Explanation
Solution
Given,
Principal (P) = $5350
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) = $5350 × 6% × 10
= $5350 ×6/100 × 10
= 5350 × 6 × 10/100
= 32100 × 10/100
= 321000/100
= $3210
Thus, Simple Interest = $3210
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 + $3210
= $8560
Thus, Amount to be paid = $8560 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) = 6%
And, Time (t) = 10 years
Thus, Amount (A)
= $5350 + ($5350 × 6% × 10)
= $5350 + ($5350 ×6/100 × 10)
= $5350 + (5350 × 6 × 10/100)
= $5350 + (32100 × 10/100)
= $5350 + (321000/100)
= $5350 + $3210 = $8560
Thus, Amount (A) to be paid = $8560 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 $5350, the simple interest in 1 year
= 6/100 × 5350
= 6 × 5350/100
= 32100/100 = $321
Thus, simple interest for 1 year = $321
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $321 × 10 = $3210
Thus, Simple Interest (SI) = $3210
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $3210
= $8560
Thus, Amount to be paid = $8560 Answer
Similar Questions
(1) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 9% simple interest?
(2) Mary took a loan of $4100 at the rate of 8% simple interest per annum. If he paid an amount of $7380 to clear the loan, then find the time period of the loan.
(3) Find the amount to be paid if John borrowed a sum of $5200 at 10% simple interest for 8 years.
(4) How much loan did Donald borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7800 to clear it?
(5) Find the amount to be paid if Karen borrowed a sum of $5950 at 6% simple interest for 8 years.
(6) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 10% simple interest.
(7) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 5% simple interest?
(8) Donald took a loan of $7000 at the rate of 7% simple interest per annum. If he paid an amount of $11900 to clear the loan, then find the time period of the loan.
(9) John took a loan of $4400 at the rate of 7% simple interest per annum. If he paid an amount of $6556 to clear the loan, then find the time period of the loan.
(10) Charles took a loan of $5800 at the rate of 7% simple interest per annum. If he paid an amount of $9860 to clear the loan, then find the time period of the loan.