Question:
Linda took a loan of $4700 at the rate of 9% simple interest per annum. If he paid an amount of $8084 to clear the loan, then find the time period of the loan.
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $4700
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $8084
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 = $8084 – $4700 = $3384
Thus, Simple Interest = $3384
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 × 3384/4700 × 9
= 338400/42300
= 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) = $4700
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $3384 (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 = 9% of Principal
= 9% of $4700
= 9/100 × 4700
= 9 × 4700/100
= 42300/100 = 423
Thus, simple Interest for 1 year = $423
Now,
∵ If the simple Interest is $423, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/423 years
∴ If the simple Interest is $3384, then the time = 1/423 × 3384 years
= 1 × 3384/423 years
= 3384/423 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
(1) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 2% simple interest?
(2) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 10% simple interest?
(3) If Michelle paid $5742 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(4) Thomas took a loan of $5600 at the rate of 10% simple interest per annum. If he paid an amount of $8960 to clear the loan, then find the time period of the loan.
(5) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 6% simple interest?
(6) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 10% simple interest for 8 years.
(7) Anthony took a loan of $6600 at the rate of 8% simple interest per annum. If he paid an amount of $9768 to clear the loan, then find the time period of the loan.
(8) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 4% simple interest?
(9) Calculate the amount due if Linda borrowed a sum of $3350 at 8% simple interest for 4 years.
(10) Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $10200 to clear the loan, then find the time period of the loan.