Question:
Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 9% simple interest.
Correct Answer
$11400
Solution And Explanation
Solution
Given,
Principal (P) = $6000
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) = $6000 × 9% × 10
= $6000 ×9/100 × 10
= 6000 × 9 × 10/100
= 54000 × 10/100
= 540000/100
= $5400
Thus, Simple Interest = $5400
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 = $6000 + $5400
= $11400
Thus, Amount to be paid = $11400 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 = $6000
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 10 years
Thus, Amount (A)
= $6000 + ($6000 × 9% × 10)
= $6000 + ($6000 ×9/100 × 10)
= $6000 + (6000 × 9 × 10/100)
= $6000 + (54000 × 10/100)
= $6000 + (540000/100)
= $6000 + $5400 = $11400
Thus, Amount (A) to be paid = $11400 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 $6000, the simple interest in 1 year
= 9/100 × 6000
= 9 × 6000/100
= 54000/100 = $540
Thus, simple interest for 1 year = $540
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $540 × 10 = $5400
Thus, Simple Interest (SI) = $5400
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $6000 + $5400
= $11400
Thus, Amount to be paid = $11400 Answer
Similar Questions
(1) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $8024 to clear the loan, then find the time period of the loan.
(2) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $11780 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 10% simple interest.
(4) If Mark paid $4752 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(5) How much loan did Jessica borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6900 to clear it?
(6) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 5% simple interest?
(7) Anthony took a loan of $6600 at the rate of 10% simple interest per annum. If he paid an amount of $12540 to clear the loan, then find the time period of the loan.
(8) How much loan did Kimberly borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7315 to clear it?
(9) Richard took a loan of $5200 at the rate of 8% simple interest per annum. If he paid an amount of $8944 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Thomas borrowed a sum of $5800 at 6% simple interest for 8 years.