Question:
Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 9% simple interest.
Correct Answer
$11210
Solution And Explanation
Solution
Given,
Principal (P) = $5900
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) = $5900 × 9% × 10
= $5900 ×9/100 × 10
= 5900 × 9 × 10/100
= 53100 × 10/100
= 531000/100
= $5310
Thus, Simple Interest = $5310
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 = $5900 + $5310
= $11210
Thus, Amount to be paid = $11210 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 = $5900
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $5900 + ($5900 × 9% × 10)
= $5900 + ($5900 ×9/100 × 10)
= $5900 + (5900 × 9 × 10/100)
= $5900 + (53100 × 10/100)
= $5900 + (531000/100)
= $5900 + $5310 = $11210
Thus, Amount (A) to be paid = $11210 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 $5900, the simple interest in 1 year
= 9/100 × 5900
= 9 × 5900/100
= 53100/100 = $531
Thus, simple interest for 1 year = $531
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $531 × 10 = $5310
Thus, Simple Interest (SI) = $5310
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5900 + $5310
= $11210
Thus, Amount to be paid = $11210 Answer
Similar Questions
(1) Mark took a loan of $6800 at the rate of 8% simple interest per annum. If he paid an amount of $10608 to clear the loan, then find the time period of the loan.
(2) Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $11008 to clear the loan, then find the time period of the loan.
(3) Linda took a loan of $4700 at the rate of 6% simple interest per annum. If he paid an amount of $6392 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Jessica borrowed a sum of $3750 at 2% simple interest for 3 years.
(5) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(6) Christopher had to pay $4360 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(7) How much loan did Richard borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6160 to clear it?
(8) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $6248 to clear the loan, then find the time period of the loan.
(9) Sarah took a loan of $5700 at the rate of 9% simple interest per annum. If he paid an amount of $10317 to clear the loan, then find the time period of the loan.
(10) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 6% simple interest?