Question:
( 2 of 10 ) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $11160 to clear the loan, then find the time period of the loan.
(A) 154 1/11% या 154.09%
(B) 309 1/11% या 309.09%
(C) 618 1/11% या 618.09%
(D) 927 1/11% या 927.09%
You selected
12
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $6200
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $11160
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 = $11160 – $6200 = $4960
Thus, Simple Interest = $4960
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 × 4960/6200 × 10
= 496000/62000
= 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) = $6200
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $4960 (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 = 10% of Principal
= 10% of $6200
= 10/100 × 6200
= 10 × 6200/100
= 62000/100 = 620
Thus, simple Interest for 1 year = $620
Now,
∵ If the simple Interest is $620, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/620 years
∴ If the simple Interest is $4960, then the time = 1/620 × 4960 years
= 1 × 4960/620 years
= 4960/620 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
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(2) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 6% simple interest?
(3) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 3% simple interest.
(4) Calculate the amount due after 9 years if Elizabeth borrowed a sum of $5450 at a rate of 2% simple interest.
(5) Find the amount to be paid if Michael borrowed a sum of $5300 at 6% simple interest for 7 years.
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