Question:
Barbara took a loan of $5100 at the rate of 9% simple interest per annum. If he paid an amount of $7854 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $5100
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $7854
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 = $7854 – $5100 = $2754
Thus, Simple Interest = $2754
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 × 2754/5100 × 9
= 275400/45900
= 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) = $5100
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $2754 (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 $5100
= 9/100 × 5100
= 9 × 5100/100
= 45900/100 = 459
Thus, simple Interest for 1 year = $459
Now,
∵ If the simple Interest is $459, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/459 years
∴ If the simple Interest is $2754, then the time = 1/459 × 2754 years
= 1 × 2754/459 years
= 2754/459 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Find the amount to be paid if Michael borrowed a sum of $5300 at 3% simple interest for 8 years.
(2) How much loan did Carol borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7755 to clear it?
(3) In how much time a principal of $3100 will amount to $3720 at a simple interest of 5% per annum?
(4) Find the amount to be paid if Thomas borrowed a sum of $5800 at 4% simple interest for 8 years.
(5) If Charles paid $4524 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(6) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $7400 to clear the loan, then find the time period of the loan.
(7) How much loan did Steven borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8250 to clear it?
(8) If Jennifer paid $3770 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) Find the amount to be paid if Joseph borrowed a sum of $5700 at 10% simple interest for 8 years.
(10) Find the amount to be paid if Thomas borrowed a sum of $5800 at 3% simple interest for 8 years.