Question:
Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 10% simple interest.
Correct Answer
$10500
Solution And Explanation
Solution
Given,
Principal (P) = $5250
Rate of Simple Interest (SI) = 10%
Time (t) = 10 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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) = $5250 × 10% × 10
= $5250 ×10/100 × 10
= 5250 × 10 × 10/100
= 52500 × 10/100
= 525000/100
= $5250
Thus, Simple Interest = $5250
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 = $5250 + $5250
= $10500
Thus, Amount to be paid = $10500 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 = $5250
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5250 + ($5250 × 10% × 10)
= $5250 + ($5250 ×10/100 × 10)
= $5250 + (5250 × 10 × 10/100)
= $5250 + (52500 × 10/100)
= $5250 + (525000/100)
= $5250 + $5250 = $10500
Thus, Amount (A) to be paid = $10500 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $5250, the simple interest in 1 year
= 10/100 × 5250
= 10 × 5250/100
= 52500/100 = $525
Thus, simple interest for 1 year = $525
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $525 × 10 = $5250
Thus, Simple Interest (SI) = $5250
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5250 + $5250
= $10500
Thus, Amount to be paid = $10500 Answer
Similar Questions
(1) Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $9920 to clear the loan, then find the time period of the loan.
(2) Mark took a loan of $6800 at the rate of 9% simple interest per annum. If he paid an amount of $12308 to clear the loan, then find the time period of the loan.
(3) Sarah took a loan of $5700 at the rate of 6% simple interest per annum. If he paid an amount of $8436 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Charles borrowed a sum of $3900 at 3% simple interest for 3 years.
(5) Calculate the amount due if Barbara borrowed a sum of $3550 at 6% simple interest for 4 years.
(6) Calculate the amount due if Charles borrowed a sum of $3900 at 10% simple interest for 4 years.
(7) Calculate the amount due if Joseph borrowed a sum of $3700 at 2% simple interest for 4 years.
(8) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 4% simple interest for 3 years.
(9) Betty took a loan of $6500 at the rate of 7% simple interest per annum. If he paid an amount of $9685 to clear the loan, then find the time period of the loan.
(10) Sandra took a loan of $6900 at the rate of 7% simple interest per annum. If he paid an amount of $11730 to clear the loan, then find the time period of the loan.