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) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 4% simple interest?
(2) What amount does William have to pay after 5 years if he takes a loan of $3500 at 10% simple interest?
(3) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 8% simple interest for 8 years.
(4) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 3% simple interest?
(5) How much loan did Jacob borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9600 to clear it?
(6) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 5% simple interest.
(7) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 4% simple interest.
(8) Calculate the amount due if Richard borrowed a sum of $3600 at 10% simple interest for 3 years.
(9) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 3% simple interest?
(10) Calculate the amount due if Christopher borrowed a sum of $4000 at 7% simple interest for 4 years.