Question:
Thomas took a loan of $5600 at the rate of 8% simple interest per annum. If he paid an amount of $9632 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) = 8% per annum
Amount (A) = $9632
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 = $9632 – $5600 = $4032
Thus, Simple Interest = $4032
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 × 4032/5600 × 8
= 403200/44800
= 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) = 8% per annum
Simple Interest = $4032 (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 = 8% of Principal
= 8% of $5600
= 8/100 × 5600
= 8 × 5600/100
= 44800/100 = 448
Thus, simple Interest for 1 year = $448
Now,
∵ If the simple Interest is $448, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/448 years
∴ If the simple Interest is $4032, then the time = 1/448 × 4032 years
= 1 × 4032/448 years
= 4032/448 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) If Jessica paid $4350 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(2) Christopher took a loan of $6000 at the rate of 9% simple interest per annum. If he paid an amount of $9780 to clear the loan, then find the time period of the loan.
(3) How much loan did Anthony borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7560 to clear it?
(4) Find the amount to be paid if Richard borrowed a sum of $5600 at 9% simple interest for 8 years.
(5) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $8932 to clear the loan, then find the time period of the loan.
(6) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 10% simple interest?
(7) Thomas took a loan of $5600 at the rate of 9% simple interest per annum. If he paid an amount of $10136 to clear the loan, then find the time period of the loan.
(8) Robert took a loan of $4200 at the rate of 8% simple interest per annum. If he paid an amount of $6552 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Michael borrowed a sum of $5300 at 2% simple interest for 7 years.
(10) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $8326 to clear the loan, then find the time period of the loan.