Question:
Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 10% simple interest.
Correct Answer
$11300
Solution And Explanation
Solution
Given,
Principal (P) = $5650
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) = $5650 × 10% × 10
= $5650 ×10/100 × 10
= 5650 × 10 × 10/100
= 56500 × 10/100
= 565000/100
= $5650
Thus, Simple Interest = $5650
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 = $5650 + $5650
= $11300
Thus, Amount to be paid = $11300 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 = $5650
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5650 + ($5650 × 10% × 10)
= $5650 + ($5650 ×10/100 × 10)
= $5650 + (5650 × 10 × 10/100)
= $5650 + (56500 × 10/100)
= $5650 + (565000/100)
= $5650 + $5650 = $11300
Thus, Amount (A) to be paid = $11300 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 $5650, the simple interest in 1 year
= 10/100 × 5650
= 10 × 5650/100
= 56500/100 = $565
Thus, simple interest for 1 year = $565
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $565 × 10 = $5650
Thus, Simple Interest (SI) = $5650
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5650 + $5650
= $11300
Thus, Amount to be paid = $11300 Answer
Similar Questions
(1) Find the amount to be paid if Mary borrowed a sum of $5050 at 7% simple interest for 7 years.
(2) If Michelle paid $5742 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(3) Find the amount to be paid if William borrowed a sum of $5500 at 7% simple interest for 8 years.
(4) Find the amount to be paid if Mary borrowed a sum of $5050 at 3% simple interest for 7 years.
(5) Donald took a loan of $7000 at the rate of 10% simple interest per annum. If he paid an amount of $11900 to clear the loan, then find the time period of the loan.
(6) Find the amount to be paid if Patricia borrowed a sum of $5150 at 4% simple interest for 7 years.
(7) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 5% simple interest?
(8) Calculate the amount due if William borrowed a sum of $3500 at 6% simple interest for 3 years.
(9) Nancy took a loan of $6300 at the rate of 6% simple interest per annum. If he paid an amount of $9324 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 5% simple interest for 7 years.