Question:
Mary took a loan of $4100 at the rate of 8% simple interest per annum. If he paid an amount of $6724 to clear the loan, then find the time period of the loan.
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $4100
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $6724
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 = $6724 – $4100 = $2624
Thus, Simple Interest = $2624
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 × 2624/4100 × 8
= 262400/32800
= 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) = $4100
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $2624 (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 = 8% of Principal
= 8% of $4100
= 8/100 × 4100
= 8 × 4100/100
= 32800/100 = 328
Thus, simple Interest for 1 year = $328
Now,
∵ If the simple Interest is $328, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/328 years
∴ If the simple Interest is $2624, then the time = 1/328 × 2624 years
= 1 × 2624/328 years
= 2624/328 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
(1) What amount does Michael have to pay after 5 years if he takes a loan of $3300 at 10% simple interest?
(2) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 6% simple interest?
(3) If Matthew paid $4872 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(4) Nancy took a loan of $6300 at the rate of 8% simple interest per annum. If he paid an amount of $11340 to clear the loan, then find the time period of the loan.
(5) Karen had to pay $4187 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(6) What amount does Michael have to pay after 5 years if he takes a loan of $3300 at 3% simple interest?
(7) Calculate the amount due if Michael borrowed a sum of $3300 at 2% simple interest for 3 years.
(8) Robert took a loan of $4200 at the rate of 8% simple interest per annum. If he paid an amount of $6888 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due if Thomas borrowed a sum of $3800 at 3% simple interest for 3 years.
(10) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 10% simple interest.