Question:
Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $9360 to clear the loan, then find the time period of the loan.
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $6000
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $9360
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 = $9360 – $6000 = $3360
Thus, Simple Interest = $3360
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 × 3360/6000 × 7
= 336000/42000
= 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) = $6000
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $3360 (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 $6000
= 7/100 × 6000
= 7 × 6000/100
= 42000/100 = 420
Thus, simple Interest for 1 year = $420
Now,
∵ If the simple Interest is $420, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/420 years
∴ If the simple Interest is $3360, then the time = 1/420 × 3360 years
= 1 × 3360/420 years
= 3360/420 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
(1) Calculate the amount due if Christopher borrowed a sum of $4000 at 10% simple interest for 4 years.
(2) Calculate the amount due if David borrowed a sum of $3400 at 6% simple interest for 3 years.
(3) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 5% simple interest?
(4) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 8% simple interest?
(5) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 5% simple interest?
(6) Find the amount to be paid if Susan borrowed a sum of $5650 at 10% simple interest for 8 years.
(7) James took a loan of $4000 at the rate of 9% simple interest per annum. If he paid an amount of $7600 to clear the loan, then find the time period of the loan.
(8) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6300 to clear it?
(9) Calculate the amount due after 10 years if Barbara borrowed a sum of $5550 at a rate of 2% simple interest.
(10) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 5% simple interest.