Question:
David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $8688 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $4800
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $8688
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 = $8688 – $4800 = $3888
Thus, Simple Interest = $3888
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 × 3888/4800 × 9
= 388800/43200
= 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) = $4800
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $3888 (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 $4800
= 9/100 × 4800
= 9 × 4800/100
= 43200/100 = 432
Thus, simple Interest for 1 year = $432
Now,
∵ If the simple Interest is $432, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/432 years
∴ If the simple Interest is $3888, then the time = 1/432 × 3888 years
= 1 × 3888/432 years
= 3888/432 = 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 6% simple interest for 7 years.
(2) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 6% simple interest for 8 years.
(3) Find the amount to be paid if Michael borrowed a sum of $5300 at 6% simple interest for 8 years.
(4) In how much time a principal of $3200 will amount to $3712 at a simple interest of 4% per annum?
(5) Donald had to pay $5175 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(6) Jennifer had to pay $3640 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(7) Mark had to pay $4664 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(8) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 5% simple interest?
(9) If Jessica paid $4050 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(10) Mark took a loan of $6800 at the rate of 8% simple interest per annum. If he paid an amount of $12240 to clear the loan, then find the time period of the loan.