Question:
John took a loan of $4400 at the rate of 9% simple interest per annum. If he paid an amount of $7964 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) = 9% per annum
Amount (A) = $7964
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 = $7964 – $4400 = $3564
Thus, Simple Interest = $3564
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 × 3564/4400 × 9
= 356400/39600
= 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) = 9% per annum
Simple Interest = $3564 (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 = 9% of Principal
= 9% of $4400
= 9/100 × 4400
= 9 × 4400/100
= 39600/100 = 396
Thus, simple Interest for 1 year = $396
Now,
∵ If the simple Interest is $396, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/396 years
∴ If the simple Interest is $3564, then the time = 1/396 × 3564 years
= 1 × 3564/396 years
= 3564/396 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) If Thomas paid $4408 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(2) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 3% simple interest?
(3) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 7% simple interest?
(4) Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $9089 to clear the loan, then find the time period of the loan.
(5) What amount will be due after 2 years if John borrowed a sum of $3100 at a 9% simple interest?
(6) Calculate the amount due if Jennifer borrowed a sum of $3250 at 5% simple interest for 4 years.
(7) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $12040 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if Susan borrowed a sum of $3650 at 8% simple interest for 4 years.
(9) Elizabeth took a loan of $4900 at the rate of 6% simple interest per annum. If he paid an amount of $6664 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if Joseph borrowed a sum of $3700 at 5% simple interest for 4 years.