Question:
Sarah took a loan of $5700 at the rate of 9% simple interest per annum. If he paid an amount of $8778 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $5700
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $8778
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 = $8778 – $5700 = $3078
Thus, Simple Interest = $3078
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 × 3078/5700 × 9
= 307800/51300
= 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) = $5700
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $3078 (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 $5700
= 9/100 × 5700
= 9 × 5700/100
= 51300/100 = 513
Thus, simple Interest for 1 year = $513
Now,
∵ If the simple Interest is $513, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/513 years
∴ If the simple Interest is $3078, then the time = 1/513 × 3078 years
= 1 × 3078/513 years
= 3078/513 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 4% simple interest.
(2) Thomas took a loan of $5600 at the rate of 8% simple interest per annum. If he paid an amount of $9184 to clear the loan, then find the time period of the loan.
(3) Find the amount to be paid if William borrowed a sum of $5500 at 9% simple interest for 7 years.
(4) How much loan did James borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5750 to clear it?
(5) Calculate the amount due if Sarah borrowed a sum of $3850 at 7% simple interest for 3 years.
(6) Find the amount to be paid if John borrowed a sum of $5200 at 9% simple interest for 8 years.
(7) Find the amount to be paid if Barbara borrowed a sum of $5550 at 6% simple interest for 7 years.
(8) Calculate the amount due if Thomas borrowed a sum of $3800 at 4% simple interest for 3 years.
(9) Joseph took a loan of $5400 at the rate of 7% simple interest per annum. If he paid an amount of $8424 to clear the loan, then find the time period of the loan.
(10) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $8600 to clear the loan, then find the time period of the loan.