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) Calculate the amount due if Jennifer borrowed a sum of $3250 at 10% simple interest for 3 years.
(2) Calculate the amount due if David borrowed a sum of $3400 at 8% simple interest for 4 years.
(3) Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 4% simple interest.
(4) Jennifer had to pay $3445 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(5) Find the amount to be paid if Joseph borrowed a sum of $5700 at 9% simple interest for 7 years.
(6) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $7052 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 7% simple interest.
(8) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(9) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 5% simple interest.
(10) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 2% simple interest for 7 years.