Question:
Susan took a loan of $5300 at the rate of 6% simple interest per annum. If he paid an amount of $7208 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $5300
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $7208
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 = $7208 – $5300 = $1908
Thus, Simple Interest = $1908
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 × 1908/5300 × 6
= 190800/31800
= 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) = $5300
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $1908 (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 $5300
= 6/100 × 5300
= 6 × 5300/100
= 31800/100 = 318
Thus, simple Interest for 1 year = $318
Now,
∵ If the simple Interest is $318, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/318 years
∴ If the simple Interest is $1908, then the time = 1/318 × 1908 years
= 1 × 1908/318 years
= 1908/318 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 5% simple interest?
(2) Calculate the amount due if William borrowed a sum of $3500 at 10% simple interest for 4 years.
(3) Calculate the amount due if Robert borrowed a sum of $3100 at 5% simple interest for 4 years.
(4) Find the amount to be paid if Michael borrowed a sum of $5300 at 2% simple interest for 7 years.
(5) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 10% simple interest.
(6) Calculate the amount due if David borrowed a sum of $3400 at 7% simple interest for 4 years.
(7) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 7% simple interest?
(8) Lisa took a loan of $6100 at the rate of 8% simple interest per annum. If he paid an amount of $9028 to clear the loan, then find the time period of the loan.
(9) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $9360 to clear the loan, then find the time period of the loan.
(10) If Joseph paid $4292 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.