Question:
Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 10% simple interest.
Correct Answer
$11500
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 10% × 10
= $5750 ×10/100 × 10
= 5750 × 10 × 10/100
= 57500 × 10/100
= 575000/100
= $5750
Thus, Simple Interest = $5750
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 = $5750 + $5750
= $11500
Thus, Amount to be paid = $11500 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 = $5750
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5750 + ($5750 × 10% × 10)
= $5750 + ($5750 ×10/100 × 10)
= $5750 + (5750 × 10 × 10/100)
= $5750 + (57500 × 10/100)
= $5750 + (575000/100)
= $5750 + $5750 = $11500
Thus, Amount (A) to be paid = $11500 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 $5750, the simple interest in 1 year
= 10/100 × 5750
= 10 × 5750/100
= 57500/100 = $575
Thus, simple interest for 1 year = $575
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $575 × 10 = $5750
Thus, Simple Interest (SI) = $5750
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $5750
= $11500
Thus, Amount to be paid = $11500 Answer
Similar Questions
(1) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 3% simple interest?
(2) Calculate the amount due if Richard borrowed a sum of $3600 at 6% simple interest for 4 years.
(3) How much loan did Joseph borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7125 to clear it?
(4) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 10% simple interest?
(5) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 5% simple interest?
(6) Calculate the amount due if Jessica borrowed a sum of $3750 at 9% simple interest for 4 years.
(7) Find the amount to be paid if Michael borrowed a sum of $5300 at 8% simple interest for 7 years.
(8) Calculate the amount due if Charles borrowed a sum of $3900 at 7% simple interest for 3 years.
(9) How much loan did Paul borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7370 to clear it?
(10) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 2% simple interest?