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) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 2% simple interest?
(2) Find the amount to be paid if Karen borrowed a sum of $5950 at 5% simple interest for 7 years.
(3) Calculate the amount due if Jessica borrowed a sum of $3750 at 4% simple interest for 3 years.
(4) Calculate the amount due if Jessica borrowed a sum of $3750 at 9% simple interest for 3 years.
(5) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 7% simple interest?
(6) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 9% simple interest.
(7) If Jennifer paid $3770 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(8) What amount does David have to pay after 5 years if he takes a loan of $3400 at 10% simple interest?
(9) Susan had to pay $4197.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(10) Susan took a loan of $5300 at the rate of 10% simple interest per annum. If he paid an amount of $8480 to clear the loan, then find the time period of the loan.