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) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 3% simple interest?
(2) Find the amount to be paid if Joseph borrowed a sum of $5700 at 6% simple interest for 7 years.
(3) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 8% simple interest?
(4) Sandra took a loan of $6900 at the rate of 8% simple interest per annum. If he paid an amount of $11316 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Thomas borrowed a sum of $5800 at 9% simple interest for 8 years.
(6) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 5% simple interest?
(7) Matthew had to pay $4578 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(8) What amount does John have to pay after 6 years if he takes a loan of $3200 at 3% simple interest?
(9) If Mary paid $3660 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(10) Susan took a loan of $5300 at the rate of 10% simple interest per annum. If he paid an amount of $10600 to clear the loan, then find the time period of the loan.