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) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 2% simple interest.
(2) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 8% simple interest?
(3) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 8% simple interest.
(4) If William paid $4060 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(5) What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 10% simple interest?
(6) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 5% simple interest.
(7) What amount does John have to pay after 6 years if he takes a loan of $3200 at 3% simple interest?
(8) Donald had to pay $5040 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(9) In how much time a principal of $3200 will amount to $3520 at a simple interest of 5% per annum?
(10) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 2% simple interest?