Question:
Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $9548 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $6200
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $9548
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 = $9548 – $6200 = $3348
Thus, Simple Interest = $3348
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 × 3348/6200 × 6
= 334800/37200
= 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) = $6200
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $3348 (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 $6200
= 6/100 × 6200
= 6 × 6200/100
= 37200/100 = 372
Thus, simple Interest for 1 year = $372
Now,
∵ If the simple Interest is $372, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/372 years
∴ If the simple Interest is $3348, then the time = 1/372 × 3348 years
= 1 × 3348/372 years
= 3348/372 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Karen took a loan of $5900 at the rate of 7% simple interest per annum. If he paid an amount of $8791 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 4% simple interest.
(3) Find the amount to be paid if William borrowed a sum of $5500 at 6% simple interest for 7 years.
(4) Calculate the amount due after 10 years if Richard borrowed a sum of $5600 at a rate of 8% simple interest.
(5) How much loan did Jacob borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8800 to clear it?
(6) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(7) In how much time a principal of $3000 will amount to $3600 at a simple interest of 5% per annum?
(8) Calculate the amount due if Joseph borrowed a sum of $3700 at 3% simple interest for 4 years.
(9) Kenneth had to pay $5750 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(10) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 4% simple interest.