Question:
Christopher took a loan of $6000 at the rate of 10% simple interest per annum. If he paid an amount of $10200 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $6000
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $10200
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 = $10200 – $6000 = $4200
Thus, Simple Interest = $4200
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 × 4200/6000 × 10
= 420000/60000
= 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) = $6000
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $4200 (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 = 10% of Principal
= 10% of $6000
= 10/100 × 6000
= 10 × 6000/100
= 60000/100 = 600
Thus, simple Interest for 1 year = $600
Now,
∵ If the simple Interest is $600, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/600 years
∴ If the simple Interest is $4200, then the time = 1/600 × 4200 years
= 1 × 4200/600 years
= 4200/600 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
(1) William had to pay $3710 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(2) Calculate the amount due if Richard borrowed a sum of $3600 at 4% simple interest for 4 years.
(3) Find the amount to be paid if James borrowed a sum of $5000 at 7% simple interest for 8 years.
(4) Calculate the amount due if Michael borrowed a sum of $3300 at 7% simple interest for 4 years.
(5) If Donna paid $5238 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(6) Calculate the amount due if Susan borrowed a sum of $3650 at 9% simple interest for 4 years.
(7) Robert took a loan of $4200 at the rate of 9% simple interest per annum. If he paid an amount of $7602 to clear the loan, then find the time period of the loan.
(8) Find the amount to be paid if Karen borrowed a sum of $5950 at 7% simple interest for 8 years.
(9) Find the amount to be paid if John borrowed a sum of $5200 at 8% simple interest for 8 years.
(10) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $7104 to clear the loan, then find the time period of the loan.