Question:
John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $7216 to clear the loan, then find the time period of the loan.
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $4400
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $7216
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 = $7216 – $4400 = $2816
Thus, Simple Interest = $2816
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 × 2816/4400 × 8
= 281600/35200
= 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) = $4400
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $2816 (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 $4400
= 8/100 × 4400
= 8 × 4400/100
= 35200/100 = 352
Thus, simple Interest for 1 year = $352
Now,
∵ If the simple Interest is $352, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/352 years
∴ If the simple Interest is $2816, then the time = 1/352 × 2816 years
= 1 × 2816/352 years
= 2816/352 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
(1) Calculate the amount due after 9 years if Mary borrowed a sum of $5050 at a rate of 9% simple interest.
(2) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 5% simple interest?
(3) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 5% simple interest.
(4) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 9% simple interest.
(5) How much loan did Margaret borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7937.5 to clear it?
(6) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $6106 to clear the loan, then find the time period of the loan.
(7) If Robert paid $3472 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(8) How much loan did Karen borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7140 to clear it?
(9) How much loan did Thomas borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6670 to clear it?
(10) Calculate the amount due if Michael borrowed a sum of $3300 at 5% simple interest for 4 years.