Question:
Matthew took a loan of $6400 at the rate of 7% simple interest per annum. If he paid an amount of $9088 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $6400
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $9088
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 = $9088 – $6400 = $2688
Thus, Simple Interest = $2688
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 × 2688/6400 × 7
= 268800/44800
= 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) = $6400
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $2688 (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 $6400
= 7/100 × 6400
= 7 × 6400/100
= 44800/100 = 448
Thus, simple Interest for 1 year = $448
Now,
∵ If the simple Interest is $448, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/448 years
∴ If the simple Interest is $2688, then the time = 1/448 × 2688 years
= 1 × 2688/448 years
= 2688/448 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) If James paid $3360 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(2) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $12040 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due if Susan borrowed a sum of $3650 at 3% simple interest for 4 years.
(4) How much loan did Joseph borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7125 to clear it?
(5) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 2% simple interest.
(6) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 10% simple interest?
(7) Find the amount to be paid if David borrowed a sum of $5400 at 9% simple interest for 8 years.
(8) Patricia took a loan of $4300 at the rate of 7% simple interest per annum. If he paid an amount of $7310 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Patricia borrowed a sum of $5150 at 4% simple interest for 8 years.
(10) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6216 to clear the loan, then find the time period of the loan.