Question:
Thomas took a loan of $5600 at the rate of 7% simple interest per annum. If he paid an amount of $7952 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $5600
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $7952
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 = $7952 – $5600 = $2352
Thus, Simple Interest = $2352
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 × 2352/5600 × 7
= 235200/39200
= 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) = $5600
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $2352 (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 $5600
= 7/100 × 5600
= 7 × 5600/100
= 39200/100 = 392
Thus, simple Interest for 1 year = $392
Now,
∵ If the simple Interest is $392, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/392 years
∴ If the simple Interest is $2352, then the time = 1/392 × 2352 years
= 1 × 2352/392 years
= 2352/392 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 2% simple interest?
(2) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $8740 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due after 10 years if Barbara borrowed a sum of $5550 at a rate of 7% simple interest.
(4) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 4% simple interest?
(5) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 3% simple interest.
(6) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 4% simple interest?
(7) How much loan did Kimberly borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7647.5 to clear it?
(8) Calculate the amount due if Jennifer borrowed a sum of $3250 at 6% simple interest for 4 years.
(9) Sarah took a loan of $5700 at the rate of 10% simple interest per annum. If he paid an amount of $10260 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 6% simple interest.