Question:
Robert took a loan of $4200 at the rate of 10% simple interest per annum. If he paid an amount of $6720 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $4200
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $6720
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 = $6720 – $4200 = $2520
Thus, Simple Interest = $2520
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 × 2520/4200 × 10
= 252000/42000
= 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) = $4200
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $2520 (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 = 10% of Principal
= 10% of $4200
= 10/100 × 4200
= 10 × 4200/100
= 42000/100 = 420
Thus, simple Interest for 1 year = $420
Now,
∵ If the simple Interest is $420, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/420 years
∴ If the simple Interest is $2520, then the time = 1/420 × 2520 years
= 1 × 2520/420 years
= 2520/420 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Calculate the amount due if Linda borrowed a sum of $3350 at 9% simple interest for 3 years.
(2) If Christopher borrowed $4000 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(3) Find the amount to be paid if Christopher borrowed a sum of $6000 at 2% simple interest for 8 years.
(4) Calculate the amount due if Michael borrowed a sum of $3300 at 2% simple interest for 4 years.
(5) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $7310 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due if Jessica borrowed a sum of $3750 at 2% simple interest for 3 years.
(7) If Robert paid $3720 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(8) How much loan did Matthew borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7130 to clear it?
(9) If Charles borrowed $3900 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(10) Find the amount to be paid if Christopher borrowed a sum of $6000 at 7% simple interest for 8 years.