Question:
Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 10% simple interest.
Correct Answer
$11400
Solution And Explanation
Solution
Given,
Principal (P) = $5700
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) = $5700 × 10% × 10
= $5700 ×10/100 × 10
= 5700 × 10 × 10/100
= 57000 × 10/100
= 570000/100
= $5700
Thus, Simple Interest = $5700
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 = $5700 + $5700
= $11400
Thus, Amount to be paid = $11400 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 = $5700
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5700 + ($5700 × 10% × 10)
= $5700 + ($5700 ×10/100 × 10)
= $5700 + (5700 × 10 × 10/100)
= $5700 + (57000 × 10/100)
= $5700 + (570000/100)
= $5700 + $5700 = $11400
Thus, Amount (A) to be paid = $11400 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 $5700, the simple interest in 1 year
= 10/100 × 5700
= 10 × 5700/100
= 57000/100 = $570
Thus, simple interest for 1 year = $570
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $570 × 10 = $5700
Thus, Simple Interest (SI) = $5700
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5700 + $5700
= $11400
Thus, Amount to be paid = $11400 Answer
Similar Questions
(1) If Margaret paid $4698 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(2) If Michael paid $3696 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(3) Calculate the amount due if Jennifer borrowed a sum of $3250 at 4% simple interest for 4 years.
(4) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 6% simple interest?
(5) Donald took a loan of $7000 at the rate of 10% simple interest per annum. If he paid an amount of $14000 to clear the loan, then find the time period of the loan.
(6) Susan took a loan of $5300 at the rate of 7% simple interest per annum. If he paid an amount of $7897 to clear the loan, then find the time period of the loan.
(7) How much loan did Robert borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6120 to clear it?
(8) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $8584 to clear the loan, then find the time period of the loan.
(9) What amount does William have to pay after 6 years if he takes a loan of $3500 at 6% simple interest?
(10) What amount does Michael have to pay after 5 years if he takes a loan of $3300 at 6% simple interest?