Question:
Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 9% simple interest.
Correct Answer
$10925
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 9% × 10
= $5750 ×9/100 × 10
= 5750 × 9 × 10/100
= 51750 × 10/100
= 517500/100
= $5175
Thus, Simple Interest = $5175
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 + $5175
= $10925
Thus, Amount to be paid = $10925 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) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $5750 + ($5750 × 9% × 10)
= $5750 + ($5750 ×9/100 × 10)
= $5750 + (5750 × 9 × 10/100)
= $5750 + (51750 × 10/100)
= $5750 + (517500/100)
= $5750 + $5175 = $10925
Thus, Amount (A) to be paid = $10925 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 $5750, the simple interest in 1 year
= 9/100 × 5750
= 9 × 5750/100
= 51750/100 = $517.5
Thus, simple interest for 1 year = $517.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $517.5 × 10 = $5175
Thus, Simple Interest (SI) = $5175
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $5175
= $10925
Thus, Amount to be paid = $10925 Answer
Similar Questions
(1) Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 4% simple interest.
(2) If Joshua paid $5880 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(3) What amount does John have to pay after 6 years if he takes a loan of $3200 at 10% simple interest?
(4) If Ashley paid $5460 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(5) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6562.5 to clear it?
(6) Calculate the amount due if David borrowed a sum of $3400 at 10% simple interest for 4 years.
(7) Find the amount to be paid if Jessica borrowed a sum of $5750 at 8% simple interest for 8 years.
(8) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 4% simple interest?
(9) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 8% simple interest.
(10) Ashley had to pay $5232.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.