Question:
Thomas took a loan of $5600 at the rate of 7% simple interest per annum. If he paid an amount of $9128 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $5600
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $9128
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 = $9128 – $5600 = $3528
Thus, Simple Interest = $3528
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 × 3528/5600 × 7
= 352800/39200
= 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) = $5600
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $3528 (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 $5600
= 7/100 × 5600
= 7 × 5600/100
= 39200/100 = 392
Thus, simple Interest for 1 year = $392
Now,
∵ If the simple Interest is $392, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/392 years
∴ If the simple Interest is $3528, then the time = 1/392 × 3528 years
= 1 × 3528/392 years
= 3528/392 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Patricia had to pay $3339 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(2) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 5% simple interest?
(3) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $7740 to clear the loan, then find the time period of the loan.
(4) If Kenneth paid $5600 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(5) Calculate the amount due after 10 years if Karen borrowed a sum of $5950 at a rate of 7% simple interest.
(6) Calculate the amount due if Sarah borrowed a sum of $3850 at 4% simple interest for 3 years.
(7) Find the amount to be paid if Richard borrowed a sum of $5600 at 4% simple interest for 7 years.
(8) Calculate the amount due if Richard borrowed a sum of $3600 at 10% simple interest for 3 years.
(9) Calculate the amount due if Joseph borrowed a sum of $3700 at 8% simple interest for 3 years.
(10) David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $8160 to clear the loan, then find the time period of the loan.