Question:
Calculate the amount due after 10 years if Richard borrowed a sum of $5600 at a rate of 10% simple interest.
Correct Answer
$11200
Solution And Explanation
Solution
Given,
Principal (P) = $5600
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) = $5600 × 10% × 10
= $5600 ×10/100 × 10
= 5600 × 10 × 10/100
= 56000 × 10/100
= 560000/100
= $5600
Thus, Simple Interest = $5600
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 = $5600 + $5600
= $11200
Thus, Amount to be paid = $11200 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 = $5600
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5600 + ($5600 × 10% × 10)
= $5600 + ($5600 ×10/100 × 10)
= $5600 + (5600 × 10 × 10/100)
= $5600 + (56000 × 10/100)
= $5600 + (560000/100)
= $5600 + $5600 = $11200
Thus, Amount (A) to be paid = $11200 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 $5600, the simple interest in 1 year
= 10/100 × 5600
= 10 × 5600/100
= 56000/100 = $560
Thus, simple interest for 1 year = $560
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $560 × 10 = $5600
Thus, Simple Interest (SI) = $5600
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5600 + $5600
= $11200
Thus, Amount to be paid = $11200 Answer
Similar Questions
(1) Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $9088 to clear the loan, then find the time period of the loan.
(2) Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $8145 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 4% simple interest.
(4) Calculate the amount due if Mary borrowed a sum of $3050 at 4% simple interest for 4 years.
(5) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 9% simple interest.
(6) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 2% simple interest?
(7) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 7% simple interest.
(8) Elizabeth took a loan of $4900 at the rate of 6% simple interest per annum. If he paid an amount of $7546 to clear the loan, then find the time period of the loan.
(9) If Jessica paid $4200 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(10) Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 6% simple interest.