Question:
David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $7872 to clear the loan, then find the time period of the loan.
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $4800
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $7872
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 = $7872 – $4800 = $3072
Thus, Simple Interest = $3072
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 × 3072/4800 × 8
= 307200/38400
= 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) = $4800
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $3072 (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 $4800
= 8/100 × 4800
= 8 × 4800/100
= 38400/100 = 384
Thus, simple Interest for 1 year = $384
Now,
∵ If the simple Interest is $384, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/384 years
∴ If the simple Interest is $3072, then the time = 1/384 × 3072 years
= 1 × 3072/384 years
= 3072/384 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
(1) Steven had to pay $5152 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(2) Calculate the amount due if Robert borrowed a sum of $3100 at 3% simple interest for 3 years.
(3) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 3% simple interest.
(4) Find the amount to be paid if Joseph borrowed a sum of $5700 at 7% simple interest for 7 years.
(5) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 9% simple interest?
(6) How much loan did David borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6480 to clear it?
(7) 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?
(8) Find the amount to be paid if Richard borrowed a sum of $5600 at 5% simple interest for 7 years.
(9) 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?
(10) If Michael borrowed $3300 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.