Question:
Thomas took a loan of $5600 at the rate of 8% simple interest per annum. If he paid an amount of $8736 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $5600
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $8736
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 = $8736 – $5600 = $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 × 3136/5600 × 8
= 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) = $5600
Rate of Simple Interest (R) = 8% 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 = 8% of Principal
= 8% of $5600
= 8/100 × 5600
= 8 × 5600/100
= 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 10 years if John borrowed a sum of $5200 at a rate of 3% simple interest.
(2) Find the amount to be paid if Linda borrowed a sum of $5350 at 8% simple interest for 7 years.
(3) Donald took a loan of $7000 at the rate of 6% simple interest per annum. If he paid an amount of $9520 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Susan borrowed a sum of $5650 at 6% simple interest for 7 years.
(5) How much loan did Andrew borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7480 to clear it?
(6) How much loan did Mary borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5807.5 to clear it?
(7) Calculate the amount due if Patricia borrowed a sum of $3150 at 9% simple interest for 4 years.
(8) James took a loan of $4000 at the rate of 6% simple interest per annum. If he paid an amount of $5440 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 4% simple interest.
(10) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 5% simple interest.