Question:
Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $11584 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $6400
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $11584
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 = $11584 – $6400 = $5184
Thus, Simple Interest = $5184
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 × 5184/6400 × 9
= 518400/57600
= 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) = $6400
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $5184 (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 $6400
= 9/100 × 6400
= 9 × 6400/100
= 57600/100 = 576
Thus, simple Interest for 1 year = $576
Now,
∵ If the simple Interest is $576, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/576 years
∴ If the simple Interest is $5184, then the time = 1/576 × 5184 years
= 1 × 5184/576 years
= 5184/576 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Calculate the amount due if Sarah borrowed a sum of $3850 at 3% simple interest for 4 years.
(2) What amount does David have to pay after 6 years if he takes a loan of $3400 at 6% simple interest?
(3) If William paid $4060 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(4) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 9% simple interest for 7 years.
(5) How much loan did John borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5980 to clear it?
(6) Sarah took a loan of $5700 at the rate of 9% simple interest per annum. If he paid an amount of $8778 to clear the loan, then find the time period of the loan.
(7) What amount will be due after 2 years if James borrowed a sum of $3000 at a 5% simple interest?
(8) Karen took a loan of $5900 at the rate of 10% simple interest per annum. If he paid an amount of $9440 to clear the loan, then find the time period of the loan.
(9) William took a loan of $5000 at the rate of 7% simple interest per annum. If he paid an amount of $7800 to clear the loan, then find the time period of the loan.
(10) Charles took a loan of $5800 at the rate of 6% simple interest per annum. If he paid an amount of $8236 to clear the loan, then find the time period of the loan.