Simple Interest
MCQs Math


Question:     Matthew took a loan of $6400 at the rate of 7% simple interest per annum. If he paid an amount of $9536 to clear the loan, then find the time period of the loan.


Correct Answer  7

Solution And Explanation

Solution

Given,

Principal (P) = $6400

Rate of Simple Interest (R) = 7% per annum

Amount (A) = $9536

Thus, time (T) = ?

Method (1) Using Formula

Calculation of Simple Interest, when Principal and Amount are given

Formual 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 = $9536 – $6400 = $3136

Thus, Simple Interest = $3136

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 × 3136/6400 × 7

= 313600/44800

= 7 years (using formula)

Thus, Time (T) = 7 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) = 7% per annum

Simple Interest = $3136 (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 = 7% of Principal

= 7% of $6400

= 7/100 × 6400

= 7 × 6400/100

= 44800/100 = 448

Thus, simple Interest for 1 year = $448

Now,

∵ If the simple Interest is $448, then the time = 1 year

∴ If the simple Interest is $1, then the time = 1/448 years

∴ If the simple Interest is $3136, then the time = 1/448 × 3136 years

= 1 × 3136/448 years

= 3136/448 = 7 years

Thus, time (T) = 7 years Answer


Similar Questions

(1) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 3% simple interest.

(2) Charles had to pay $4251 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(3) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 9% simple interest.

(4) James took a loan of $4000 at the rate of 10% simple interest per annum. If he paid an amount of $7600 to clear the loan, then find the time period of the loan.

(5) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $11020 to clear the loan, then find the time period of the loan.

(6) Kenneth had to pay $5450 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(7) If Robert paid $3348 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(8) In how much time a principal of $3100 will amount to $3224 at a simple interest of 2% per annum?

(9) Calculate the amount due if Joseph borrowed a sum of $3700 at 7% simple interest for 4 years.

(10) If Kimberly paid $5022 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.


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