Question:
Calculate the amount due after 10 years if Karen borrowed a sum of $5950 at a rate of 9% simple interest.
Correct Answer
$11305
Solution And Explanation
Solution
Given,
Principal (P) = $5950
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) = $5950 × 9% × 10
= $5950 ×9/100 × 10
= 5950 × 9 × 10/100
= 53550 × 10/100
= 535500/100
= $5355
Thus, Simple Interest = $5355
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 = $5950 + $5355
= $11305
Thus, Amount to be paid = $11305 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 = $5950
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $5950 + ($5950 × 9% × 10)
= $5950 + ($5950 ×9/100 × 10)
= $5950 + (5950 × 9 × 10/100)
= $5950 + (53550 × 10/100)
= $5950 + (535500/100)
= $5950 + $5355 = $11305
Thus, Amount (A) to be paid = $11305 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 $5950, the simple interest in 1 year
= 9/100 × 5950
= 9 × 5950/100
= 53550/100 = $535.5
Thus, simple interest for 1 year = $535.5
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $535.5 × 10 = $5355
Thus, Simple Interest (SI) = $5355
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5950 + $5355
= $11305
Thus, Amount to be paid = $11305 Answer
Similar Questions
(1) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $11560 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 9% simple interest.
(3) Calculate the amount due if Mary borrowed a sum of $3050 at 4% simple interest for 3 years.
(4) Find the amount to be paid if Susan borrowed a sum of $5650 at 2% simple interest for 7 years.
(5) If Jessica paid $4200 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(6) Calculate the amount due if James borrowed a sum of $3000 at 9% simple interest for 4 years.
(7) How much loan did Andrew borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8500 to clear it?
(8) If Emily paid $5320 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(9) Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 4% simple interest.
(10) Susan had to pay $3869 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.