Question:
Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 9% simple interest.
Correct Answer
$10165
Solution And Explanation
Solution
Given,
Principal (P) = $5350
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) = $5350 × 9% × 10
= $5350 ×9/100 × 10
= 5350 × 9 × 10/100
= 48150 × 10/100
= 481500/100
= $4815
Thus, Simple Interest = $4815
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 = $5350 + $4815
= $10165
Thus, Amount to be paid = $10165 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 = $5350
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $5350 + ($5350 × 9% × 10)
= $5350 + ($5350 ×9/100 × 10)
= $5350 + (5350 × 9 × 10/100)
= $5350 + (48150 × 10/100)
= $5350 + (481500/100)
= $5350 + $4815 = $10165
Thus, Amount (A) to be paid = $10165 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 $5350, the simple interest in 1 year
= 9/100 × 5350
= 9 × 5350/100
= 48150/100 = $481.5
Thus, simple interest for 1 year = $481.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $481.5 × 10 = $4815
Thus, Simple Interest (SI) = $4815
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $4815
= $10165
Thus, Amount to be paid = $10165 Answer
Similar Questions
(1) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 4% simple interest?
(2) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 8% simple interest.
(3) David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $9120 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Jessica borrowed a sum of $5750 at 7% simple interest for 8 years.
(5) Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 5% simple interest.
(6) If Ashley paid $5278 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(7) Calculate the amount due if Jessica borrowed a sum of $3750 at 3% simple interest for 3 years.
(8) David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $8688 to clear the loan, then find the time period of the loan.
(9) How much loan did Jeffrey borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8580 to clear it?
(10) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 6% simple interest.