Question:
Calculate the amount due after 10 years if Karen borrowed a sum of $5950 at a rate of 6% simple interest.
Correct Answer
$9520
Solution And Explanation
Solution
Given,
Principal (P) = $5950
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) = $5950 × 6% × 10
= $5950 ×6/100 × 10
= 5950 × 6 × 10/100
= 35700 × 10/100
= 357000/100
= $3570
Thus, Simple Interest = $3570
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 = $5950 + $3570
= $9520
Thus, Amount to be paid = $9520 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 = $5950
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 10 years
Thus, Amount (A)
= $5950 + ($5950 × 6% × 10)
= $5950 + ($5950 ×6/100 × 10)
= $5950 + (5950 × 6 × 10/100)
= $5950 + (35700 × 10/100)
= $5950 + (357000/100)
= $5950 + $3570 = $9520
Thus, Amount (A) to be paid = $9520 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 $5950, the simple interest in 1 year
= 6/100 × 5950
= 6 × 5950/100
= 35700/100 = $357
Thus, simple interest for 1 year = $357
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $357 × 10 = $3570
Thus, Simple Interest (SI) = $3570
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5950 + $3570
= $9520
Thus, Amount to be paid = $9520 Answer
Similar Questions
(1) Find the amount to be paid if James borrowed a sum of $5000 at 7% simple interest for 7 years.
(2) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 7% simple interest?
(3) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 5% simple interest?
(4) Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $9516 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Michael borrowed a sum of $5300 at 3% simple interest for 8 years.
(6) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 7% simple interest.
(7) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 3% simple interest?
(8) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 5% simple interest.
(9) Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $6846 to clear the loan, then find the time period of the loan.
(10) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 5% simple interest?