Question:
Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $6314 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $4100
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $6314
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 = $6314 – $4100 = $2214
Thus, Simple Interest = $2214
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 × 2214/4100 × 9
= 221400/36900
= 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) = $4100
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $2214 (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 $4100
= 9/100 × 4100
= 9 × 4100/100
= 36900/100 = 369
Thus, simple Interest for 1 year = $369
Now,
∵ If the simple Interest is $369, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/369 years
∴ If the simple Interest is $2214, then the time = 1/369 × 2214 years
= 1 × 2214/369 years
= 2214/369 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
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(2) Find the amount to be paid if Thomas borrowed a sum of $5800 at 2% simple interest for 8 years.
(3) Calculate the amount due if Joseph borrowed a sum of $3700 at 4% simple interest for 3 years.
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(6) How much loan did Richard borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6160 to clear it?
(7) Barbara took a loan of $5100 at the rate of 8% simple interest per annum. If he paid an amount of $8364 to clear the loan, then find the time period of the loan.
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