Question:
Calculate the amount due after 10 years if Barbara borrowed a sum of $5550 at a rate of 10% simple interest.
Correct Answer
$11100
Solution And Explanation
Solution
Given,
Principal (P) = $5550
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) = $5550 × 10% × 10
= $5550 ×10/100 × 10
= 5550 × 10 × 10/100
= 55500 × 10/100
= 555000/100
= $5550
Thus, Simple Interest = $5550
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 = $5550 + $5550
= $11100
Thus, Amount to be paid = $11100 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 = $5550
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5550 + ($5550 × 10% × 10)
= $5550 + ($5550 ×10/100 × 10)
= $5550 + (5550 × 10 × 10/100)
= $5550 + (55500 × 10/100)
= $5550 + (555000/100)
= $5550 + $5550 = $11100
Thus, Amount (A) to be paid = $11100 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 $5550, the simple interest in 1 year
= 10/100 × 5550
= 10 × 5550/100
= 55500/100 = $555
Thus, simple interest for 1 year = $555
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $555 × 10 = $5550
Thus, Simple Interest (SI) = $5550
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5550 + $5550
= $11100
Thus, Amount to be paid = $11100 Answer
Similar Questions
(1) Calculate the amount due if Charles borrowed a sum of $3900 at 3% simple interest for 4 years.
(2) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 7% simple interest.
(3) Find the amount to be paid if David borrowed a sum of $5400 at 3% simple interest for 8 years.
(4) If Joseph borrowed $3700 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(5) If Betty paid $4590 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(6) If Susan paid $4088 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(7) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $10168 to clear the loan, then find the time period of the loan.
(8) Find the amount to be paid if James borrowed a sum of $5000 at 4% simple interest for 8 years.
(9) Karen took a loan of $5900 at the rate of 7% simple interest per annum. If he paid an amount of $8378 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 5% simple interest.