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) Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $10164 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if Karen borrowed a sum of $5950 at 10% simple interest for 8 years.
(3) 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?
(4) Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $10240 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Karen borrowed a sum of $5950 at 9% simple interest for 7 years.
(6) Calculate the amount due if Robert borrowed a sum of $3100 at 3% simple interest for 3 years.
(7) Calculate the amount due if Patricia borrowed a sum of $3150 at 10% simple interest for 4 years.
(8) Susan took a loan of $5300 at the rate of 7% simple interest per annum. If he paid an amount of $9010 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Robert borrowed a sum of $5100 at 7% simple interest for 8 years.
(10) Calculate the amount due if David borrowed a sum of $3400 at 5% simple interest for 4 years.