Question:
Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 9% simple interest.
Correct Answer
$11020
Solution And Explanation
Solution
Given,
Principal (P) = $5800
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) = $5800 × 9% × 10
= $5800 ×9/100 × 10
= 5800 × 9 × 10/100
= 52200 × 10/100
= 522000/100
= $5220
Thus, Simple Interest = $5220
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 = $5800 + $5220
= $11020
Thus, Amount to be paid = $11020 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 = $5800
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $5800 + ($5800 × 9% × 10)
= $5800 + ($5800 ×9/100 × 10)
= $5800 + (5800 × 9 × 10/100)
= $5800 + (52200 × 10/100)
= $5800 + (522000/100)
= $5800 + $5220 = $11020
Thus, Amount (A) to be paid = $11020 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 $5800, the simple interest in 1 year
= 9/100 × 5800
= 9 × 5800/100
= 52200/100 = $522
Thus, simple interest for 1 year = $522
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $522 × 10 = $5220
Thus, Simple Interest (SI) = $5220
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5800 + $5220
= $11020
Thus, Amount to be paid = $11020 Answer
Similar Questions
(1) Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $7335 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if Sarah borrowed a sum of $5850 at 7% simple interest for 7 years.
(3) Find the amount to be paid if Christopher borrowed a sum of $6000 at 6% simple interest for 8 years.
(4) Linda had to pay $3651.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(5) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $10318 to clear the loan, then find the time period of the loan.
(6) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $5712 to clear the loan, then find the time period of the loan.
(7) Find the amount to be paid if Susan borrowed a sum of $5650 at 3% simple interest for 8 years.
(8) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 7% simple interest?
(9) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 2% simple interest for 7 years.
(10) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 7% simple interest?