Simple Interest
MCQs Math


Question:     Mark took a loan of $6800 at the rate of 8% simple interest per annum. If he paid an amount of $10064 to clear the loan, then find the time period of the loan.


Correct Answer  6

Solution And Explanation

Solution

Given,

Principal (P) = $6800

Rate of Simple Interest (R) = 8% per annum

Amount (A) = $10064

Thus, time (T) = ?

Method (1) Using Formula

Calculation of Simple Interest, when Principal and Amount are given

Formual 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 = $10064 – $6800 = $3264

Thus, Simple Interest = $3264

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 × 3264/6800 × 8

= 326400/54400

= 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) = $6800

Rate of Simple Interest (R) = 8% per annum

Simple Interest = $3264 (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 $6800

= 8/100 × 6800

= 8 × 6800/100

= 54400/100 = 544

Thus, simple Interest for 1 year = $544

Now,

∵ If the simple Interest is $544, then the time = 1 year

∴ If the simple Interest is $1, then the time = 1/544 years

∴ If the simple Interest is $3264, then the time = 1/544 × 3264 years

= 1 × 3264/544 years

= 3264/544 = 6 years

Thus, time (T) = 6 years Answer


Similar Questions

(1) How much loan did Amanda borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8580 to clear it?

(2) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 7% simple interest.

(3) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 9% simple interest.

(4) Donald took a loan of $7000 at the rate of 7% simple interest per annum. If he paid an amount of $9940 to clear the loan, then find the time period of the loan.

(5) In how much time a principal of $3200 will amount to $3584 at a simple interest of 3% per annum?

(6) Donald took a loan of $7000 at the rate of 10% simple interest per annum. If he paid an amount of $11200 to clear the loan, then find the time period of the loan.

(7) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $6816 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 8% simple interest.

(9) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 9% simple interest?

(10) Thomas took a loan of $5600 at the rate of 9% simple interest per annum. If he paid an amount of $10136 to clear the loan, then find the time period of the loan.


NCERT Solution and CBSE Notes for class twelve, eleventh, tenth, ninth, seventh, sixth, fifth, fourth and General Math for competitive Exams. ©