Question:
Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $8932 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $5800
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $8932
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 = $8932 – $5800 = $3132
Thus, Simple Interest = $3132
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 × 3132/5800 × 9
= 313200/52200
= 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) = $5800
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $3132 (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 $5800
= 9/100 × 5800
= 9 × 5800/100
= 52200/100 = 522
Thus, simple Interest for 1 year = $522
Now,
∵ If the simple Interest is $522, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/522 years
∴ If the simple Interest is $3132, then the time = 1/522 × 3132 years
= 1 × 3132/522 years
= 3132/522 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $12400 to clear the loan, then find the time period of the loan.
(2) If Richard paid $4032 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(3) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 9% simple interest?
(4) Find the amount to be paid if Michael borrowed a sum of $5300 at 4% simple interest for 8 years.
(5) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $9000 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 8% simple interest.
(7) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 10% simple interest.
(8) Nancy took a loan of $6300 at the rate of 6% simple interest per annum. If he paid an amount of $9324 to clear the loan, then find the time period of the loan.
(9) In how much time a principal of $3200 will amount to $3488 at a simple interest of 3% per annum?
(10) Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $10560 to clear the loan, then find the time period of the loan.