Question:
Mary took a loan of $4100 at the rate of 6% simple interest per annum. If he paid an amount of $6314 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $4100
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $6314
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 = $6314 – $4100 = $2214
Thus, Simple Interest = $2214
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 × 2214/4100 × 6
= 221400/24600
= 9 years (using formula)
Thus, Time (T) = 9 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) = $4100
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $2214 (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 = 6% of Principal
= 6% of $4100
= 6/100 × 4100
= 6 × 4100/100
= 24600/100 = 246
Thus, simple Interest for 1 year = $246
Now,
∵ If the simple Interest is $246, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/246 years
∴ If the simple Interest is $2214, then the time = 1/246 × 2214 years
= 1 × 2214/246 years
= 2214/246 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Calculate the amount due after 9 years if Mary borrowed a sum of $5050 at a rate of 2% simple interest.
(2) How much loan did Ryan borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9480 to clear it?
(3) Find the amount to be paid if Susan borrowed a sum of $5650 at 7% simple interest for 8 years.
(4) Calculate the amount due if David borrowed a sum of $3400 at 10% simple interest for 4 years.
(5) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 8% simple interest?
(6) Calculate the amount due if Susan borrowed a sum of $3650 at 2% simple interest for 3 years.
(7) Find the amount to be paid if Michael borrowed a sum of $5300 at 4% simple interest for 8 years.
(8) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $10320 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due if Barbara borrowed a sum of $3550 at 8% simple interest for 3 years.
(10) Michael took a loan of $4600 at the rate of 8% simple interest per annum. If he paid an amount of $6808 to clear the loan, then find the time period of the loan.