Question:
Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 6% simple interest.
Correct Answer
$9600
Solution And Explanation
Solution
Given,
Principal (P) = $6000
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) = $6000 × 6% × 10
= $6000 ×6/100 × 10
= 6000 × 6 × 10/100
= 36000 × 10/100
= 360000/100
= $3600
Thus, Simple Interest = $3600
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 = $6000 + $3600
= $9600
Thus, Amount to be paid = $9600 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 = $6000
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 10 years
Thus, Amount (A)
= $6000 + ($6000 × 6% × 10)
= $6000 + ($6000 ×6/100 × 10)
= $6000 + (6000 × 6 × 10/100)
= $6000 + (36000 × 10/100)
= $6000 + (360000/100)
= $6000 + $3600 = $9600
Thus, Amount (A) to be paid = $9600 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 $6000, the simple interest in 1 year
= 6/100 × 6000
= 6 × 6000/100
= 36000/100 = $360
Thus, simple interest for 1 year = $360
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $360 × 10 = $3600
Thus, Simple Interest (SI) = $3600
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $6000 + $3600
= $9600
Thus, Amount to be paid = $9600 Answer
Similar Questions
(1) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 7% simple interest.
(2) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 10% simple interest?
(3) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 6% simple interest.
(4) How much loan did Steven borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7260 to clear it?
(5) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 6% simple interest?
(6) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 3% simple interest?
(7) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $9540 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if Mary borrowed a sum of $3050 at 7% simple interest for 4 years.
(9) Kenneth had to pay $5750 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(10) Jessica took a loan of $5500 at the rate of 6% simple interest per annum. If he paid an amount of $7810 to clear the loan, then find the time period of the loan.