Question:
Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $5964 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $4200
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $5964
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 = $5964 – $4200 = $1764
Thus, Simple Interest = $1764
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 × 1764/4200 × 7
= 176400/29400
= 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) = $4200
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $1764 (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 = 7% of Principal
= 7% of $4200
= 7/100 × 4200
= 7 × 4200/100
= 29400/100 = 294
Thus, simple Interest for 1 year = $294
Now,
∵ If the simple Interest is $294, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/294 years
∴ If the simple Interest is $1764, then the time = 1/294 × 1764 years
= 1 × 1764/294 years
= 1764/294 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) In how much time a principal of $3050 will amount to $3507.5 at a simple interest of 3% per annum?
(2) Joshua had to pay $5194 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(3) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 10% simple interest?
(4) How much loan did Kimberly borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7980 to clear it?
(5) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 4% simple interest.
(6) Find the amount to be paid if Sarah borrowed a sum of $5850 at 9% simple interest for 7 years.
(7) Calculate the amount due if David borrowed a sum of $3400 at 2% simple interest for 3 years.
(8) Find the amount to be paid if Christopher borrowed a sum of $6000 at 9% simple interest for 8 years.
(9) Calculate the amount due if Linda borrowed a sum of $3350 at 9% simple interest for 3 years.
(10) Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $9856 to clear the loan, then find the time period of the loan.