Simple Interest
MCQs Math


Question:     Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 10% simple interest.


Correct Answer  $11700

Solution And Explanation

Solution

Given,

Principal (P) = $5850

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) = $5850 × 10% × 10

= $5850 ×10/100 × 10

= 5850 × 10 × 10/100

= 58500 × 10/100

= 585000/100

= $5850

Thus, Simple Interest = $5850

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 = $5850 + $5850

= $11700

Thus, Amount to be paid = $11700 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 = $5850

Rate of Simple Interest (SI) or (R) = 10%

And, Time (t) = 10 years

Thus, Amount (A)

= $5850 + ($5850 × 10% × 10)

= $5850 + ($5850 ×10/100 × 10)

= $5850 + (5850 × 10 × 10/100)

= $5850 + (58500 × 10/100)

= $5850 + (585000/100)

= $5850 + $5850 = $11700

Thus, Amount (A) to be paid = $11700 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 $5850, the simple interest in 1 year

= 10/100 × 5850

= 10 × 5850/100

= 58500/100 = $585

Thus, simple interest for 1 year = $585

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $585 × 10 = $5850

Thus, Simple Interest (SI) = $5850

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5850 + $5850

= $11700

Thus, Amount to be paid = $11700 Answer


Similar Questions

(1) Donald took a loan of $7000 at the rate of 8% simple interest per annum. If he paid an amount of $10360 to clear the loan, then find the time period of the loan.

(2) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 5% simple interest for 4 years.

(3) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 2% simple interest?

(4) Find the amount to be paid if David borrowed a sum of $5400 at 9% simple interest for 7 years.

(5) Find the amount to be paid if John borrowed a sum of $5200 at 6% simple interest for 7 years.

(6) Sarah took a loan of $5700 at the rate of 10% simple interest per annum. If he paid an amount of $10260 to clear the loan, then find the time period of the loan.

(7) Sarah took a loan of $5700 at the rate of 8% simple interest per annum. If he paid an amount of $8436 to clear the loan, then find the time period of the loan.

(8) In how much time a principal of $3000 will amount to $3600 at a simple interest of 4% per annum?

(9) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 9% simple interest?

(10) Calculate the amount due if Michael borrowed a sum of $3300 at 3% simple interest for 3 years.


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