Question:
James took a loan of $4000 at the rate of 9% simple interest per annum. If he paid an amount of $6160 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $4000
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $6160
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 = $6160 – $4000 = $2160
Thus, Simple Interest = $2160
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 × 2160/4000 × 9
= 216000/36000
= 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) = $4000
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $2160 (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 = 9% of Principal
= 9% of $4000
= 9/100 × 4000
= 9 × 4000/100
= 36000/100 = 360
Thus, simple Interest for 1 year = $360
Now,
∵ If the simple Interest is $360, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/360 years
∴ If the simple Interest is $2160, then the time = 1/360 × 2160 years
= 1 × 2160/360 years
= 2160/360 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Mary took a loan of $4100 at the rate of 6% simple interest per annum. If he paid an amount of $6068 to clear the loan, then find the time period of the loan.
(2) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 8% simple interest?
(3) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 3% simple interest?
(4) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 2% simple interest?
(5) If Linda borrowed $3350 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(6) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 7% simple interest.
(7) If Elizabeth paid $4002 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(8) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 3% simple interest?
(9) Calculate the amount due if Charles borrowed a sum of $3900 at 7% simple interest for 3 years.
(10) William took a loan of $5000 at the rate of 9% simple interest per annum. If he paid an amount of $9500 to clear the loan, then find the time period of the loan.