Question:
Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $7072 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $5200
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $7072
Thus, time (T) = ?
Method (1) Using Formula
Calculation of Simple Interest, when Principal and Amount are givenFormual 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 = $7072 – $5200 = $1872
Thus, Simple Interest = $1872
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 × 1872/5200 × 6
= 187200/31200
= 6 years (using formula)
Thus, Time (T) = 6 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) = $5200
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $1872 (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 = 6% of Principal
= 6% of $5200
= 6/100 × 5200
= 6 × 5200/100
= 31200/100 = 312
Thus, simple Interest for 1 year = $312
Now,
∵ If the simple Interest is $312, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/312 years
∴ If the simple Interest is $1872, then the time = 1/312 × 1872 years
= 1 × 1872/312 years
= 1872/312 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
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(2) Calculate the amount due if Richard borrowed a sum of $3600 at 2% simple interest for 4 years.
(3) Mary took a loan of $4100 at the rate of 8% simple interest per annum. If he paid an amount of $6396 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Christopher borrowed a sum of $6000 at 10% simple interest for 8 years.
(5) If Christopher borrowed $4000 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(6) Michael took a loan of $4600 at the rate of 6% simple interest per annum. If he paid an amount of $7360 to clear the loan, then find the time period of the loan.
(7) Thomas took a loan of $5600 at the rate of 9% simple interest per annum. If he paid an amount of $9128 to clear the loan, then find the time period of the loan.
(8) Find the amount to be paid if Christopher borrowed a sum of $6000 at 6% simple interest for 7 years.
(9) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $11084 to clear the loan, then find the time period of the loan.
(10) Karen took a loan of $5900 at the rate of 10% simple interest per annum. If he paid an amount of $9440 to clear the loan, then find the time period of the loan.