Question:
Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 9% simple interest.
Correct Answer
$10735
Solution And Explanation
Solution
Given,
Principal (P) = $5650
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) = $5650 × 9% × 10
= $5650 ×9/100 × 10
= 5650 × 9 × 10/100
= 50850 × 10/100
= 508500/100
= $5085
Thus, Simple Interest = $5085
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 = $5650 + $5085
= $10735
Thus, Amount to be paid = $10735 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 = $5650
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $5650 + ($5650 × 9% × 10)
= $5650 + ($5650 ×9/100 × 10)
= $5650 + (5650 × 9 × 10/100)
= $5650 + (50850 × 10/100)
= $5650 + (508500/100)
= $5650 + $5085 = $10735
Thus, Amount (A) to be paid = $10735 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 $5650, the simple interest in 1 year
= 9/100 × 5650
= 9 × 5650/100
= 50850/100 = $508.5
Thus, simple interest for 1 year = $508.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $508.5 × 10 = $5085
Thus, Simple Interest (SI) = $5085
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5650 + $5085
= $10735
Thus, Amount to be paid = $10735 Answer
Similar Questions
(1) Calculate the amount due if Barbara borrowed a sum of $3550 at 9% simple interest for 3 years.
(2) How much loan did Kimberly borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7647.5 to clear it?
(3) Betty took a loan of $6500 at the rate of 7% simple interest per annum. If he paid an amount of $9685 to clear the loan, then find the time period of the loan.
(4) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 2% simple interest?
(5) Find the amount to be paid if Mary borrowed a sum of $5050 at 8% simple interest for 7 years.
(6) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 8% simple interest for 8 years.
(7) Find the amount to be paid if Barbara borrowed a sum of $5550 at 6% simple interest for 7 years.
(8) Calculate the amount due after 9 years if Mary borrowed a sum of $5050 at a rate of 9% simple interest.
(9) How much loan did Michael borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6625 to clear it?
(10) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 10% simple interest.