Question:
Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $7335 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $4500
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $7335
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 = $7335 – $4500 = $2835
Thus, Simple Interest = $2835
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 × 2835/4500 × 9
= 283500/40500
= 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) = $4500
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $2835 (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 $4500
= 9/100 × 4500
= 9 × 4500/100
= 40500/100 = 405
Thus, simple Interest for 1 year = $405
Now,
∵ If the simple Interest is $405, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/405 years
∴ If the simple Interest is $2835, then the time = 1/405 × 2835 years
= 1 × 2835/405 years
= 2835/405 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
(1) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 8% simple interest.
(2) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 9% simple interest?
(3) 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?
(4) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $7650 to clear the loan, then find the time period of the loan.
(5) Sarah took a loan of $5700 at the rate of 6% simple interest per annum. If he paid an amount of $9120 to clear the loan, then find the time period of the loan.
(6) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 9% simple interest?
(7) Matthew had to pay $4452 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(8) Calculate the amount due if Jessica borrowed a sum of $3750 at 8% simple interest for 4 years.
(9) Calculate the amount due if Susan borrowed a sum of $3650 at 2% simple interest for 4 years.
(10) Mark took a loan of $6800 at the rate of 10% simple interest per annum. If he paid an amount of $11560 to clear the loan, then find the time period of the loan.