Question:
Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $8094 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) = 7% per annum
Amount (A) = $8094
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 = $8094 – $5700 = $2394
Thus, Simple Interest = $2394
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 × 2394/5700 × 7
= 239400/39900
= 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) = 7% per annum
Simple Interest = $2394 (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 $5700
= 7/100 × 5700
= 7 × 5700/100
= 39900/100 = 399
Thus, simple Interest for 1 year = $399
Now,
∵ If the simple Interest is $399, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/399 years
∴ If the simple Interest is $2394, then the time = 1/399 × 2394 years
= 1 × 2394/399 years
= 2394/399 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Christopher took a loan of $6000 at the rate of 10% simple interest per annum. If he paid an amount of $10800 to clear the loan, then find the time period of the loan.
(2) If Susan paid $4088 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(3) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 4% simple interest.
(4) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 4% simple interest?
(5) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 6% simple interest?
(6) William took a loan of $5000 at the rate of 9% simple interest per annum. If he paid an amount of $9050 to clear the loan, then find the time period of the loan.
(7) Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $8640 to clear the loan, then find the time period of the loan.
(8) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 6% simple interest?
(9) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 3% simple interest?
(10) Daniel had to pay $4346 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.