Simple Interest
MCQs Math


Question:     Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 9% simple interest.


Correct Answer  $10450

Solution And Explanation

Solution

Given,

Principal (P) = $5500

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) = $5500 × 9% × 10

= $5500 ×9/100 × 10

= 5500 × 9 × 10/100

= 49500 × 10/100

= 495000/100

= $4950

Thus, Simple Interest = $4950

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 = $5500 + $4950

= $10450

Thus, Amount to be paid = $10450 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 = $5500

Rate of Simple Interest (SI) or (R) = 9%

And, Time (t) = 10 years

Thus, Amount (A)

= $5500 + ($5500 × 9% × 10)

= $5500 + ($5500 ×9/100 × 10)

= $5500 + (5500 × 9 × 10/100)

= $5500 + (49500 × 10/100)

= $5500 + (495000/100)

= $5500 + $4950 = $10450

Thus, Amount (A) to be paid = $10450 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 $5500, the simple interest in 1 year

= 9/100 × 5500

= 9 × 5500/100

= 49500/100 = $495

Thus, simple interest for 1 year = $495

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $495 × 10 = $4950

Thus, Simple Interest (SI) = $4950

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5500 + $4950

= $10450

Thus, Amount to be paid = $10450 Answer


Similar Questions

(1) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 6% simple interest.

(2) Calculate the amount due if Jennifer borrowed a sum of $3250 at 3% simple interest for 4 years.

(3) Anthony took a loan of $6600 at the rate of 7% simple interest per annum. If he paid an amount of $11220 to clear the loan, then find the time period of the loan.

(4) If Robert paid $3720 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(5) What amount will be due after 2 years if John borrowed a sum of $3100 at a 5% simple interest?

(6) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 7% simple interest?

(7) If Joseph paid $4440 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(8) In how much time a principal of $3100 will amount to $3720 at a simple interest of 4% per annum?

(9) Nancy took a loan of $6300 at the rate of 7% simple interest per annum. If he paid an amount of $9387 to clear the loan, then find the time period of the loan.

(10) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 7% simple interest?


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