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) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 2% simple interest.
(2) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 9% simple interest?
(3) How much loan did David borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6750 to clear it?
(4) William took a loan of $5000 at the rate of 8% simple interest per annum. If he paid an amount of $8200 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Christopher borrowed a sum of $6000 at 3% simple interest for 8 years.
(6) What amount does James have to pay after 5 years if he takes a loan of $3000 at 2% simple interest?
(7) Mark took a loan of $6800 at the rate of 9% simple interest per annum. If he paid an amount of $11696 to clear the loan, then find the time period of the loan.
(8) How much loan did Karen borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7437.5 to clear it?
(9) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 3% simple interest?
(10) Matthew took a loan of $6400 at the rate of 8% simple interest per annum. If he paid an amount of $11008 to clear the loan, then find the time period of the loan.