Question:
Lisa took a loan of $6100 at the rate of 10% simple interest per annum. If he paid an amount of $10370 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $6100
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $10370
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 = $10370 – $6100 = $4270
Thus, Simple Interest = $4270
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 × 4270/6100 × 10
= 427000/61000
= 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) = $6100
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $4270 (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 $6100
= 10/100 × 6100
= 10 × 6100/100
= 61000/100 = 610
Thus, simple Interest for 1 year = $610
Now,
∵ If the simple Interest is $610, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/610 years
∴ If the simple Interest is $4270, then the time = 1/610 × 4270 years
= 1 × 4270/610 years
= 4270/610 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
(1) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $8320 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due if Patricia borrowed a sum of $3150 at 6% simple interest for 4 years.
(3) If Joshua paid $5684 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(4) John had to pay $3392 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(5) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 10% simple interest.
(6) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 10% simple interest?
(7) What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 10% simple interest?
(8) Find the amount to be paid if Robert borrowed a sum of $5100 at 6% simple interest for 7 years.
(9) Calculate the amount due if Jessica borrowed a sum of $3750 at 5% simple interest for 4 years.
(10) Patricia took a loan of $4300 at the rate of 9% simple interest per annum. If he paid an amount of $6622 to clear the loan, then find the time period of the loan.