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) If Mary paid $3538 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(2) Calculate the amount due if Patricia borrowed a sum of $3150 at 6% simple interest for 4 years.
(3) What amount does James have to pay after 6 years if he takes a loan of $3000 at 6% simple interest?
(4) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 5% simple interest?
(5) John took a loan of $4400 at the rate of 9% simple interest per annum. If he paid an amount of $7568 to clear the loan, then find the time period of the loan.
(6) If Jessica paid $4350 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(7) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(8) Jennifer took a loan of $4500 at the rate of 8% simple interest per annum. If he paid an amount of $8100 to clear the loan, then find the time period of the loan.
(9) How much loan did Edward borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8740 to clear it?
(10) If Linda paid $4020 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.