Question:
Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $6683 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $4100
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $6683
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 = $6683 – $4100 = $2583
Thus, Simple Interest = $2583
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 × 2583/4100 × 9
= 258300/36900
= 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) = $4100
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $2583 (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 = 9% of Principal
= 9% of $4100
= 9/100 × 4100
= 9 × 4100/100
= 36900/100 = 369
Thus, simple Interest for 1 year = $369
Now,
∵ If the simple Interest is $369, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/369 years
∴ If the simple Interest is $2583, then the time = 1/369 × 2583 years
= 1 × 2583/369 years
= 2583/369 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
(1) Barbara took a loan of $5100 at the rate of 6% simple interest per annum. If he paid an amount of $7548 to clear the loan, then find the time period of the loan.
(2) What amount will be due after 2 years if Andrew borrowed a sum of $3900 at a 4% simple interest?
(3) How much loan did Timothy borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8880 to clear it?
(4) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 2% simple interest for 4 years.
(5) Mary took a loan of $4100 at the rate of 6% simple interest per annum. If he paid an amount of $6560 to clear the loan, then find the time period of the loan.
(6) Margaret took a loan of $6700 at the rate of 10% simple interest per annum. If he paid an amount of $13400 to clear the loan, then find the time period of the loan.
(7) How much loan did Ronald borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8250 to clear it?
(8) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 5% simple interest.
(9) Calculate the amount due if John borrowed a sum of $3200 at 5% simple interest for 3 years.
(10) Susan took a loan of $5300 at the rate of 7% simple interest per annum. If he paid an amount of $8639 to clear the loan, then find the time period of the loan.