Question:
Lisa took a loan of $6100 at the rate of 6% simple interest per annum. If he paid an amount of $9394 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $6100
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $9394
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 = $9394 – $6100 = $3294
Thus, Simple Interest = $3294
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 × 3294/6100 × 6
= 329400/36600
= 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) = $6100
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $3294 (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 $6100
= 6/100 × 6100
= 6 × 6100/100
= 36600/100 = 366
Thus, simple Interest for 1 year = $366
Now,
∵ If the simple Interest is $366, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/366 years
∴ If the simple Interest is $3294, then the time = 1/366 × 3294 years
= 1 × 3294/366 years
= 3294/366 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) How much loan did Brian borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8640 to clear it?
(2) Find the amount to be paid if Robert borrowed a sum of $5100 at 3% simple interest for 7 years.
(3) How much loan did Kevin borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8520 to clear it?
(4) Find the amount to be paid if Jessica borrowed a sum of $5750 at 2% simple interest for 7 years.
(5) Jessica took a loan of $5500 at the rate of 9% simple interest per annum. If he paid an amount of $10450 to clear the loan, then find the time period of the loan.
(6) How much loan did Betty borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6875 to clear it?
(7) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 10% simple interest?
(8) Donald took a loan of $7000 at the rate of 7% simple interest per annum. If he paid an amount of $11900 to clear the loan, then find the time period of the loan.
(9) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 2% simple interest?
(10) Lisa took a loan of $6100 at the rate of 8% simple interest per annum. If he paid an amount of $9516 to clear the loan, then find the time period of the loan.