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) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 10% simple interest?
(2) John took a loan of $4400 at the rate of 9% simple interest per annum. If he paid an amount of $7568 to clear the loan, then find the time period of the loan.
(3) Margaret took a loan of $6700 at the rate of 8% simple interest per annum. If he paid an amount of $9916 to clear the loan, then find the time period of the loan.
(4) Mary had to pay $3416 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(5) William took a loan of $5000 at the rate of 10% simple interest per annum. If he paid an amount of $9000 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 5% simple interest.
(7) Find the amount to be paid if Michael borrowed a sum of $5300 at 8% simple interest for 8 years.
(8) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 4% simple interest?
(9) Mark took a loan of $6800 at the rate of 10% simple interest per annum. If he paid an amount of $11560 to clear the loan, then find the time period of the loan.
(10) David had to pay $3706 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.