Question:
John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $6864 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $4400
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $6864
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 = $6864 – $4400 = $2464
Thus, Simple Interest = $2464
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 × 2464/4400 × 8
= 246400/35200
= 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) = $4400
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $2464 (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 = 8% of Principal
= 8% of $4400
= 8/100 × 4400
= 8 × 4400/100
= 35200/100 = 352
Thus, simple Interest for 1 year = $352
Now,
∵ If the simple Interest is $352, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/352 years
∴ If the simple Interest is $2464, then the time = 1/352 × 2464 years
= 1 × 2464/352 years
= 2464/352 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
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(2) Find the amount to be paid if Sarah borrowed a sum of $5850 at 5% simple interest for 7 years.
(3) Jennifer took a loan of $4500 at the rate of 6% simple interest per annum. If he paid an amount of $6660 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Jessica borrowed a sum of $5750 at 3% simple interest for 7 years.
(5) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 9% simple interest?
(6) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 8% simple interest.
(7) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 6% simple interest?
(8) If Joseph paid $4292 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) If Michelle paid $5742 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(10) Find the amount to be paid if David borrowed a sum of $5400 at 4% simple interest for 7 years.