Question:
Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $9856 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $6400
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $9856
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 = $9856 – $6400 = $3456
Thus, Simple Interest = $3456
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 × 3456/6400 × 6
= 345600/38400
= 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) = $6400
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $3456 (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 $6400
= 6/100 × 6400
= 6 × 6400/100
= 38400/100 = 384
Thus, simple Interest for 1 year = $384
Now,
∵ If the simple Interest is $384, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/384 years
∴ If the simple Interest is $3456, then the time = 1/384 × 3456 years
= 1 × 3456/384 years
= 3456/384 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Find the amount to be paid if John borrowed a sum of $5200 at 10% simple interest for 7 years.
(2) Calculate the amount due if Patricia borrowed a sum of $3150 at 6% simple interest for 4 years.
(3) Find the amount to be paid if Richard borrowed a sum of $5600 at 3% simple interest for 8 years.
(4) Calculate the amount due if Linda borrowed a sum of $3350 at 8% simple interest for 3 years.
(5) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(6) Sandra had to pay $4717 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(7) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 6% simple interest?
(8) Find the amount to be paid if Susan borrowed a sum of $5650 at 4% simple interest for 7 years.
(9) How much loan did Betty borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7500 to clear it?
(10) Calculate the amount due if Charles borrowed a sum of $3900 at 10% simple interest for 4 years.