Question:
Sarah took a loan of $5700 at the rate of 6% simple interest per annum. If he paid an amount of $7752 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $5700
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $7752
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 = $7752 – $5700 = $2052
Thus, Simple Interest = $2052
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 × 2052/5700 × 6
= 205200/34200
= 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) = $5700
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $2052 (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 $5700
= 6/100 × 5700
= 6 × 5700/100
= 34200/100 = 342
Thus, simple Interest for 1 year = $342
Now,
∵ If the simple Interest is $342, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/342 years
∴ If the simple Interest is $2052, then the time = 1/342 × 2052 years
= 1 × 2052/342 years
= 2052/342 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) If David borrowed $3400 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(2) Find the amount to be paid if Susan borrowed a sum of $5650 at 8% simple interest for 7 years.
(3) Find the amount to be paid if Susan borrowed a sum of $5650 at 8% simple interest for 8 years.
(4) Calculate the amount due after 9 years if Mary borrowed a sum of $5050 at a rate of 5% simple interest.
(5) Find the amount to be paid if Mary borrowed a sum of $5050 at 3% simple interest for 8 years.
(6) If Elizabeth borrowed $3450 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(7) In how much time a principal of $3200 will amount to $3392 at a simple interest of 3% per annum?
(8) If Margaret paid $4872 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(9) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $9200 to clear the loan, then find the time period of the loan.
(10) Joseph took a loan of $5400 at the rate of 8% simple interest per annum. If he paid an amount of $7992 to clear the loan, then find the time period of the loan.