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) If William borrowed $3500 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(2) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 7% simple interest?
(3) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $7152 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 9% simple interest.
(5) Calculate the amount due if Charles borrowed a sum of $3900 at 5% simple interest for 3 years.
(6) Joseph took a loan of $5400 at the rate of 10% simple interest per annum. If he paid an amount of $9180 to clear the loan, then find the time period of the loan.
(7) How much loan did Joshua borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8280 to clear it?
(8) Calculate the amount due if Charles borrowed a sum of $3900 at 10% simple interest for 4 years.
(9) What amount does James have to pay after 6 years if he takes a loan of $3000 at 4% simple interest?
(10) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 4% simple interest?