Question:
Margaret took a loan of $6700 at the rate of 8% simple interest per annum. If he paid an amount of $9916 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $6700
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $9916
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 = $9916 – $6700 = $3216
Thus, Simple Interest = $3216
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 × 3216/6700 × 8
= 321600/53600
= 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) = $6700
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $3216 (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 = 8% of Principal
= 8% of $6700
= 8/100 × 6700
= 8 × 6700/100
= 53600/100 = 536
Thus, simple Interest for 1 year = $536
Now,
∵ If the simple Interest is $536, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/536 years
∴ If the simple Interest is $3216, then the time = 1/536 × 3216 years
= 1 × 3216/536 years
= 3216/536 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $11020 to clear the loan, then find the time period of the loan.
(2) Michael had to pay $3498 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(3) Calculate the amount due if Barbara borrowed a sum of $3550 at 7% simple interest for 3 years.
(4) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 5% simple interest?
(5) What amount does David have to pay after 6 years if he takes a loan of $3400 at 3% simple interest?
(6) Daniel took a loan of $6200 at the rate of 7% simple interest per annum. If he paid an amount of $8804 to clear the loan, then find the time period of the loan.
(7) If Nancy paid $4648 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(8) Barbara took a loan of $5100 at the rate of 8% simple interest per annum. If he paid an amount of $9180 to clear the loan, then find the time period of the loan.
(9) If Jennifer borrowed $3250 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(10) Calculate the amount due if Thomas borrowed a sum of $3800 at 10% simple interest for 4 years.