Question:
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.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $6800
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $11560
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 = $11560 – $6800 = $4760
Thus, Simple Interest = $4760
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 × 4760/6800 × 10
= 476000/68000
= 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) = $6800
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $4760 (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 $6800
= 10/100 × 6800
= 10 × 6800/100
= 68000/100 = 680
Thus, simple Interest for 1 year = $680
Now,
∵ If the simple Interest is $680, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/680 years
∴ If the simple Interest is $4760, then the time = 1/680 × 4760 years
= 1 × 4760/680 years
= 4760/680 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
(1) Kimberly had to pay $5208 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(2) How much loan did James borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5750 to clear it?
(3) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 8% simple interest?
(4) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 10% simple interest?
(5) If John borrowed $3200 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(6) What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 8% simple interest?
(7) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 4% simple interest.
(8) Calculate the amount due if John borrowed a sum of $3200 at 6% simple interest for 4 years.
(9) In how much time a principal of $3050 will amount to $3294 at a simple interest of 2% per annum?
(10) If David paid $3672 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.