Question:
Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $6552 to clear the loan, then find the time period of the loan.
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $4200
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $6552
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 = $6552 – $4200 = $2352
Thus, Simple Interest = $2352
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 × 2352/4200 × 7
= 235200/29400
= 8 years (using formula)
Thus, Time (T) = 8 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) = $4200
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $2352 (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 = 7% of Principal
= 7% of $4200
= 7/100 × 4200
= 7 × 4200/100
= 29400/100 = 294
Thus, simple Interest for 1 year = $294
Now,
∵ If the simple Interest is $294, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/294 years
∴ If the simple Interest is $2352, then the time = 1/294 × 2352 years
= 1 × 2352/294 years
= 2352/294 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
(1) Lisa had to pay $4414.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(2) Calculate the amount due if Thomas borrowed a sum of $3800 at 5% simple interest for 4 years.
(3) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $10921 to clear the loan, then find the time period of the loan.
(4) How much loan did Michael borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6095 to clear it?
(5) Calculate the amount due if Charles borrowed a sum of $3900 at 2% simple interest for 3 years.
(6) Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 10% simple interest.
(7) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 2% simple interest.
(8) Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 3% simple interest.
(9) Find the amount to be paid if Michael borrowed a sum of $5300 at 4% simple interest for 7 years.
(10) Mary took a loan of $4100 at the rate of 8% simple interest per annum. If he paid an amount of $6068 to clear the loan, then find the time period of the loan.