Question:
Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 10% simple interest.
Correct Answer
$10700
Solution And Explanation
Solution
Given,
Principal (P) = $5350
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) = $5350 × 10% × 10
= $5350 ×10/100 × 10
= 5350 × 10 × 10/100
= 53500 × 10/100
= 535000/100
= $5350
Thus, Simple Interest = $5350
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 = $5350 + $5350
= $10700
Thus, Amount to be paid = $10700 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 = $5350
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5350 + ($5350 × 10% × 10)
= $5350 + ($5350 ×10/100 × 10)
= $5350 + (5350 × 10 × 10/100)
= $5350 + (53500 × 10/100)
= $5350 + (535000/100)
= $5350 + $5350 = $10700
Thus, Amount (A) to be paid = $10700 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 $5350, the simple interest in 1 year
= 10/100 × 5350
= 10 × 5350/100
= 53500/100 = $535
Thus, simple interest for 1 year = $535
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $535 × 10 = $5350
Thus, Simple Interest (SI) = $5350
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $5350
= $10700
Thus, Amount to be paid = $10700 Answer
Similar Questions
(1) How much loan did John borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6240 to clear it?
(2) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 5% simple interest?
(3) Daniel took a loan of $6200 at the rate of 7% simple interest per annum. If he paid an amount of $9238 to clear the loan, then find the time period of the loan.
(4) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 7% simple interest?
(5) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 2% simple interest?
(6) Find the amount to be paid if Robert borrowed a sum of $5100 at 9% simple interest for 8 years.
(7) What amount will be due after 2 years if James borrowed a sum of $3000 at a 10% simple interest?
(8) How much loan did Susan borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7062.5 to clear it?
(9) Calculate the amount due if Barbara borrowed a sum of $3550 at 10% simple interest for 4 years.
(10) 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.