Question:
Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $10664 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) = 8% per annum
Amount (A) = $10664
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 = $10664 – $6200 = $4464
Thus, Simple Interest = $4464
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 × 4464/6200 × 8
= 446400/49600
= 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) = 8% per annum
Simple Interest = $4464 (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 $6200
= 8/100 × 6200
= 8 × 6200/100
= 49600/100 = 496
Thus, simple Interest for 1 year = $496
Now,
∵ If the simple Interest is $496, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/496 years
∴ If the simple Interest is $4464, then the time = 1/496 × 4464 years
= 1 × 4464/496 years
= 4464/496 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) If Anthony paid $5160 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(2) Find the amount to be paid if Barbara borrowed a sum of $5550 at 4% simple interest for 8 years.
(3) Calculate the amount due if Susan borrowed a sum of $3650 at 6% simple interest for 3 years.
(4) Donald took a loan of $7000 at the rate of 8% simple interest per annum. If he paid an amount of $12600 to clear the loan, then find the time period of the loan.
(5) What amount does William have to pay after 6 years if he takes a loan of $3500 at 10% simple interest?
(6) Jessica took a loan of $5500 at the rate of 9% simple interest per annum. If he paid an amount of $9955 to clear the loan, then find the time period of the loan.
(7) Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $6846 to clear the loan, then find the time period of the loan.
(8) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 3% simple interest?
(9) How much loan did Rebecca borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9180 to clear it?
(10) Betty took a loan of $6500 at the rate of 8% simple interest per annum. If he paid an amount of $9620 to clear the loan, then find the time period of the loan.