Question:
Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $10240 to clear the loan, then find the time period of the loan.
Correct Answer
6
Solution And Explanation
Solution
Given,
Principal (P) = $6400
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $10240
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 = $10240 – $6400 = $3840
Thus, Simple Interest = $3840
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 × 3840/6400 × 10
= 384000/64000
= 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) = $6400
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $3840 (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 $6400
= 10/100 × 6400
= 10 × 6400/100
= 64000/100 = 640
Thus, simple Interest for 1 year = $640
Now,
∵ If the simple Interest is $640, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/640 years
∴ If the simple Interest is $3840, then the time = 1/640 × 3840 years
= 1 × 3840/640 years
= 3840/640 = 6 years
Thus, time (T) = 6 years Answer
Similar Questions
(1) Find the amount to be paid if Susan borrowed a sum of $5650 at 10% simple interest for 8 years.
(2) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 4% simple interest?
(3) Calculate the amount due if Charles borrowed a sum of $3900 at 6% simple interest for 3 years.
(4) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 5% simple interest?
(5) What amount will be due after 2 years if Mark borrowed a sum of $3700 at a 6% simple interest?
(6) Jessica took a loan of $5500 at the rate of 8% simple interest per annum. If he paid an amount of $9020 to clear the loan, then find the time period of the loan.
(7) Find the amount to be paid if Karen borrowed a sum of $5950 at 8% simple interest for 7 years.
(8) Calculate the amount due if Barbara borrowed a sum of $3550 at 6% simple interest for 4 years.
(9) Linda took a loan of $4700 at the rate of 10% simple interest per annum. If he paid an amount of $7520 to clear the loan, then find the time period of the loan.
(10) If Mary paid $3660 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.