Question:
Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $9548 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $6200
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $9548
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 = $9548 – $6200 = $3348
Thus, Simple Interest = $3348
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 × 3348/6200 × 9
= 334800/55800
= 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) = $6200
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $3348 (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 $6200
= 9/100 × 6200
= 9 × 6200/100
= 55800/100 = 558
Thus, simple Interest for 1 year = $558
Now,
∵ If the simple Interest is $558, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/558 years
∴ If the simple Interest is $3348, then the time = 1/558 × 3348 years
= 1 × 3348/558 years
= 3348/558 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $8740 to clear the loan, then find the time period of the loan.
(2) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $10064 to clear the loan, then find the time period of the loan.
(3) How much loan did Daniel borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7015 to clear it?
(4) If Daniel paid $4428 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(5) In how much time a principal of $3100 will amount to $3410 at a simple interest of 2% per annum?
(6) Find the amount to be paid if John borrowed a sum of $5200 at 5% simple interest for 8 years.
(7) Joseph took a loan of $5400 at the rate of 10% simple interest per annum. If he paid an amount of $10800 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if Christopher borrowed a sum of $4000 at 9% simple interest for 3 years.
(9) Find the amount to be paid if Michael borrowed a sum of $5300 at 3% simple interest for 8 years.
(10) William took a loan of $5000 at the rate of 9% simple interest per annum. If he paid an amount of $8150 to clear the loan, then find the time period of the loan.