Question:
Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 10% simple interest.
Correct Answer
$11600
Solution And Explanation
Solution
Given,
Principal (P) = $5800
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) = $5800 × 10% × 10
= $5800 ×10/100 × 10
= 5800 × 10 × 10/100
= 58000 × 10/100
= 580000/100
= $5800
Thus, Simple Interest = $5800
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 = $5800 + $5800
= $11600
Thus, Amount to be paid = $11600 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 = $5800
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 10 years
Thus, Amount (A)
= $5800 + ($5800 × 10% × 10)
= $5800 + ($5800 ×10/100 × 10)
= $5800 + (5800 × 10 × 10/100)
= $5800 + (58000 × 10/100)
= $5800 + (580000/100)
= $5800 + $5800 = $11600
Thus, Amount (A) to be paid = $11600 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 $5800, the simple interest in 1 year
= 10/100 × 5800
= 10 × 5800/100
= 58000/100 = $580
Thus, simple interest for 1 year = $580
Therefore, simple interest for 10 years
= Simple interest for 1 year × 10
= $580 × 10 = $5800
Thus, Simple Interest (SI) = $5800
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5800 + $5800
= $11600
Thus, Amount to be paid = $11600 Answer
Similar Questions
(1) Margaret took a loan of $6700 at the rate of 8% simple interest per annum. If he paid an amount of $12060 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 9% simple interest.
(3) Calculate the amount due if Jennifer borrowed a sum of $3250 at 7% simple interest for 4 years.
(4) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 8% simple interest?
(5) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $10440 to clear the loan, then find the time period of the loan.
(6) What amount does Christopher have to pay after 6 years if he takes a loan of $4000 at 10% simple interest?
(7) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 8% simple interest.
(8) What amount will be due after 2 years if Matthew borrowed a sum of $3600 at a 10% simple interest?
(9) In how much time a principal of $3200 will amount to $3520 at a simple interest of 2% per annum?
(10) Find the amount to be paid if Linda borrowed a sum of $5350 at 2% simple interest for 8 years.