Question:
( 3 of 10 ) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 9% simple interest.
(A) 11 19/46 days or 11.413 days
(B) 22 19/46 days or 22.413 days
(C) 46 days
(D) 23 days
You selected
$5250
Correct Answer
$9975
Solution And Explanation
Solution
Given,
Principal (P) = $5250
Rate of Simple Interest (SI) = 9%
Time (t) = 10 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $5250 × 9% × 10
= $5250 ×9/100 × 10
= 5250 × 9 × 10/100
= 47250 × 10/100
= 472500/100
= $4725
Thus, Simple Interest = $4725
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 = $5250 + $4725
= $9975
Thus, Amount to be paid = $9975 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 = $5250
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $5250 + ($5250 × 9% × 10)
= $5250 + ($5250 ×9/100 × 10)
= $5250 + (5250 × 9 × 10/100)
= $5250 + (47250 × 10/100)
= $5250 + (472500/100)
= $5250 + $4725 = $9975
Thus, Amount (A) to be paid = $9975 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 9%
This, means, $9 per $100 per year
∵ For $100, the simple interest for 1 year = $9
∴ For $1, the simple interest for 1 year = 9/100
∴ For $5250, the simple interest in 1 year
= 9/100 × 5250
= 9 × 5250/100
= 47250/100 = $472.5
Thus, simple interest for 1 year = $472.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $472.5 × 10 = $4725
Thus, Simple Interest (SI) = $4725
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5250 + $4725
= $9975
Thus, Amount to be paid = $9975 Answer
Similar Questions
(1) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $10064 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due if Michael borrowed a sum of $3300 at 4% simple interest for 3 years.
(3) How much loan did Timothy borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9250 to clear it?
(4) If Michael borrowed $3300 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(5) Find the amount to be paid if Robert borrowed a sum of $5100 at 8% simple interest for 7 years.
(6) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 2% simple interest?
(7) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $9200 to clear the loan, then find the time period of the loan.
(8) In how much time a principal of $3200 will amount to $3840 at a simple interest of 4% per annum?
(9) Calculate the amount due if Susan borrowed a sum of $3650 at 9% simple interest for 4 years.
(10) Susan had to pay $4088 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.