Question:
Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 7% simple interest.
Correct Answer
$9775
Solution And Explanation
Solution
Given,
Principal (P) = $5750
Rate of Simple Interest (SI) = 7%
Time (t) = 10 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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) = $5750 × 7% × 10
= $5750 ×7/100 × 10
= 5750 × 7 × 10/100
= 40250 × 10/100
= 402500/100
= $4025
Thus, Simple Interest = $4025
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 = $5750 + $4025
= $9775
Thus, Amount to be paid = $9775 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 = $5750
Rate of Simple Interest (SI) or (R) = 7%
And, Time (t) = 10 years
Thus, Amount (A)
= $5750 + ($5750 × 7% × 10)
= $5750 + ($5750 ×7/100 × 10)
= $5750 + (5750 × 7 × 10/100)
= $5750 + (40250 × 10/100)
= $5750 + (402500/100)
= $5750 + $4025 = $9775
Thus, Amount (A) to be paid = $9775 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 7%
This, means, $7 per $100 per year
∵ For $100, the simple interest for 1 year = $7
∴ For $1, the simple interest for 1 year = 7/100
∴ For $5750, the simple interest in 1 year
= 7/100 × 5750
= 7 × 5750/100
= 40250/100 = $402.5
Thus, simple interest for 1 year = $402.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $402.5 × 10 = $4025
Thus, Simple Interest (SI) = $4025
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $4025
= $9775
Thus, Amount to be paid = $9775 Answer
Similar Questions
(1) Find the amount to be paid if Susan borrowed a sum of $5650 at 10% simple interest for 7 years.
(2) Find the amount to be paid if Christopher borrowed a sum of $6000 at 10% simple interest for 8 years.
(3) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $8732 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if John borrowed a sum of $3200 at 2% simple interest for 4 years.
(5) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 9% simple interest?
(6) Charles took a loan of $5800 at the rate of 7% simple interest per annum. If he paid an amount of $8236 to clear the loan, then find the time period of the loan.
(7) Find the amount to be paid if Sarah borrowed a sum of $5850 at 6% simple interest for 7 years.
(8) Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 3% simple interest.
(9) Find the amount to be paid if Karen borrowed a sum of $5950 at 4% simple interest for 8 years.
(10) How much loan did Barbara borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6105 to clear it?