Question:
Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $10318 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $6700
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $10318
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 = $10318 – $6700 = $3618
Thus, Simple Interest = $3618
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 × 3618/6700 × 9
= 361800/60300
= 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) = $6700
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $3618 (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 $6700
= 9/100 × 6700
= 9 × 6700/100
= 60300/100 = 603
Thus, simple Interest for 1 year = $603
Now,
∵ If the simple Interest is $603, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/603 years
∴ If the simple Interest is $3618, then the time = 1/603 × 3618 years
= 1 × 3618/603 years
= 3618/603 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $7140 to clear the loan, then find the time period of the loan.
(2) Michael took a loan of $4600 at the rate of 8% simple interest per annum. If he paid an amount of $7544 to clear the loan, then find the time period of the loan.
(3) David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $8640 to clear the loan, then find the time period of the loan.
(4) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 10% simple interest?
(5) Jessica took a loan of $5500 at the rate of 10% simple interest per annum. If he paid an amount of $8800 to clear the loan, then find the time period of the loan.
(6) How much loan did David borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6210 to clear it?
(7) Calculate the amount due if Barbara borrowed a sum of $3550 at 8% simple interest for 4 years.
(8) If Karen paid $4582 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 8% simple interest.
(10) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 6% simple interest?