Simple Interest
MCQs Math


Question:     In how much time a principal of $3000 will amount to $3120 at a simple interest of 2% per annum?


Correct Answer  2

Solution And Explanation

Solution

Given,

Principal (P) = $3000

Rate of Simple Interest (R) = 2% per annum

Amount (A) = $3120

Thus, time (T) = ?

Method (1) Using Formula

Calculation of Simple Interest, when Principal and Amount are given

Formual to Calculate Simple Interest when Principal and Amount are given

We know that, Amount (A) = Principal (P) + Simple Interest (SI)

⇒ Simple Interest (SI) = Amount – Principal

⇒ SI = $3120 – $3000 = $120

Thus, Simple Interest = $120

Calculation of the Time using forumula when Amount, Simple Interest and Principal are known

Formula to find the Time (T)

Time (T) = 100 × Simple Interest/Principal × Rate of Interest

⇒ T = 100 × SI/P × R

Thus, Time (T) = 100 × 120/3000 × 2

= 12000/6000

= 2 years (using formula)

Thus, Time (T) = 2 years (from time taken before calculation)Answer

Calculation of the Time using Unitary Method when Amount, Simple Interest and Principal are known

Here, we have

Principal (P) = $3000

Rate of Simple Interest (R) = 2% per annum

Simple Interest = $120 (As calculated above by subtracting Principal from the Amount given)

We know that, interest is calculated on the basis of the Principal.

This means Simple Interest for 1 year = Rate of simple interest × Principal

Thus, Simple Interest for 1 year = 2% of Principal

= 2% of $3000

= 2/100 × 3000

= 2 × 3000/100

= 6000/100 = 60

Thus, simple Interest for 1 year = $60

Now,

∵ If the simple Interest is $60, then the time = 1 year

∴ If the simple Interest is $1, then the time = 1/60 years

∴ If the simple Interest is $120, then the time = 1/60 × 120 years

= 1 × 120/60 years

= 120/60 = 2 years

Thus, time (T) = 2 years Answer


Similar Questions

(1) Robert took a loan of $4200 at the rate of 10% simple interest per annum. If he paid an amount of $7980 to clear the loan, then find the time period of the loan.

(2) If Christopher borrowed $4000 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(3) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 7% simple interest?

(4) Calculate the amount due if John borrowed a sum of $3200 at 4% simple interest for 4 years.

(5) Find the amount to be paid if James borrowed a sum of $5000 at 9% simple interest for 7 years.

(6) Find the amount to be paid if Michael borrowed a sum of $5300 at 9% simple interest for 8 years.

(7) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $8378 to clear the loan, then find the time period of the loan.

(8) Jessica had to pay $4087.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(9) How much loan did Kevin borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8875 to clear it?

(10) Elizabeth took a loan of $4900 at the rate of 7% simple interest per annum. If he paid an amount of $7644 to clear the loan, then find the time period of the loan.


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