Question:
John took a loan of $4400 at the rate of 7% simple interest per annum. If he paid an amount of $7172 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $4400
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $7172
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 = $7172 – $4400 = $2772
Thus, Simple Interest = $2772
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 × 2772/4400 × 7
= 277200/30800
= 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) = $4400
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $2772 (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 = 7% of Principal
= 7% of $4400
= 7/100 × 4400
= 7 × 4400/100
= 30800/100 = 308
Thus, simple Interest for 1 year = $308
Now,
∵ If the simple Interest is $308, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/308 years
∴ If the simple Interest is $2772, then the time = 1/308 × 2772 years
= 1 × 2772/308 years
= 2772/308 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Find the amount to be paid if Richard borrowed a sum of $5600 at 9% simple interest for 7 years.
(2) 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.
(3) If Joseph paid $3996 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(4) How much loan did Anthony borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6930 to clear it?
(5) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 7% simple interest?
(6) Calculate the amount due if Susan borrowed a sum of $3650 at 6% simple interest for 4 years.
(7) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 9% simple interest?
(8) Calculate the amount due if Michael borrowed a sum of $3300 at 7% simple interest for 4 years.
(9) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $8100 to clear the loan, then find the time period of the loan.
(10) Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $9780 to clear the loan, then find the time period of the loan.