Question:
Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $11520 to clear the loan, then find the time period of the loan.
Correct Answer
8
Solution And Explanation
Solution
Given,
Principal (P) = $6400
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $11520
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 = $11520 – $6400 = $5120
Thus, Simple Interest = $5120
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 × 5120/6400 × 10
= 512000/64000
= 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) = $6400
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $5120 (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 $6400
= 10/100 × 6400
= 10 × 6400/100
= 64000/100 = 640
Thus, simple Interest for 1 year = $640
Now,
∵ If the simple Interest is $640, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/640 years
∴ If the simple Interest is $5120, then the time = 1/640 × 5120 years
= 1 × 5120/640 years
= 5120/640 = 8 years
Thus, time (T) = 8 years Answer
Similar Questions
(1) David took a loan of $4800 at the rate of 6% simple interest per annum. If he paid an amount of $7680 to clear the loan, then find the time period of the loan.
(2) What amount does John have to pay after 6 years if he takes a loan of $3200 at 3% simple interest?
(3) Calculate the amount due if Joseph borrowed a sum of $3700 at 6% simple interest for 3 years.
(4) Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $7344 to clear the loan, then find the time period of the loan.
(5) Sarah had to pay $4081 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 Mary have to pay after 5 years if he takes a loan of $3050 at 4% simple interest?
(7) What amount does Karen have to pay after 6 years if he takes a loan of $3950 at 8% simple interest?
(8) Ashley had to pay $4959.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(9) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 10% simple interest.
(10) Joseph took a loan of $5400 at the rate of 8% simple interest per annum. If he paid an amount of $8424 to clear the loan, then find the time period of the loan.