Question:
Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $8662 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $6100
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $8662
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 = $8662 – $6100 = $2562
Thus, Simple Interest = $2562
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 × 2562/6100 × 7
= 256200/42700
= 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) = $6100
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $2562 (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 $6100
= 7/100 × 6100
= 7 × 6100/100
= 42700/100 = 427
Thus, simple Interest for 1 year = $427
Now,
∵ If the simple Interest is $427, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/427 years
∴ If the simple Interest is $2562, then the time = 1/427 × 2562 years
= 1 × 2562/427 years
= 2562/427 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) What amount will be due after 2 years if John borrowed a sum of $3100 at a 6% simple interest?
(2) If Mary paid $3660 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(3) Jessica had to pay $3975 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(4) What amount will be due after 2 years if David borrowed a sum of $3200 at a 6% simple interest?
(5) How much loan did Daniel borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7625 to clear it?
(6) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 10% simple interest.
(7) Karen had to pay $4424 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(8) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $10318 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Susan borrowed a sum of $5650 at 2% simple interest for 8 years.
(10) David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $8256 to clear the loan, then find the time period of the loan.