Question:
Patricia took a loan of $4300 at the rate of 9% simple interest per annum. If he paid an amount of $7009 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $4300
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $7009
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 = $7009 – $4300 = $2709
Thus, Simple Interest = $2709
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 × 2709/4300 × 9
= 270900/38700
= 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) = $4300
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $2709 (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 $4300
= 9/100 × 4300
= 9 × 4300/100
= 38700/100 = 387
Thus, simple Interest for 1 year = $387
Now,
∵ If the simple Interest is $387, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/387 years
∴ If the simple Interest is $2709, then the time = 1/387 × 2709 years
= 1 × 2709/387 years
= 2709/387 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
(1) Calculate the amount due if Linda borrowed a sum of $3350 at 5% simple interest for 4 years.
(2) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 10% simple interest for 8 years.
(3) How much loan did Nancy borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7687.5 to clear it?
(4) If Jennifer paid $3900 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(5) If Matthew paid $4704 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(6) David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $7392 to clear the loan, then find the time period of the loan.
(7) Barbara had to pay $4082.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(8) Find the amount to be paid if Charles borrowed a sum of $5900 at 2% simple interest for 7 years.
(9) Jennifer took a loan of $4500 at the rate of 6% simple interest per annum. If he paid an amount of $6390 to clear the loan, then find the time period of the loan.
(10) Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $6552 to clear the loan, then find the time period of the loan.