Question:
David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $9120 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) = 10% per annum
Amount (A) = $9120
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 = $9120 – $4800 = $4320
Thus, Simple Interest = $4320
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 × 4320/4800 × 10
= 432000/48000
= 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) = 10% per annum
Simple Interest = $4320 (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 = 10% of Principal
= 10% of $4800
= 10/100 × 4800
= 10 × 4800/100
= 48000/100 = 480
Thus, simple Interest for 1 year = $480
Now,
∵ If the simple Interest is $480, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/480 years
∴ If the simple Interest is $4320, then the time = 1/480 × 4320 years
= 1 × 4320/480 years
= 4320/480 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Calculate the amount due if Patricia borrowed a sum of $3150 at 9% simple interest for 4 years.
(2) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 9% simple interest?
(3) What amount does Karen have to pay after 6 years if he takes a loan of $3950 at 7% simple interest?
(4) Linda took a loan of $4700 at the rate of 10% simple interest per annum. If he paid an amount of $8460 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 4% simple interest.
(6) If Christopher paid $4640 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(7) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $10608 to clear the loan, then find the time period of the loan.
(8) Betty took a loan of $6500 at the rate of 9% simple interest per annum. If he paid an amount of $10010 to clear the loan, then find the time period of the loan.
(9) If Emily paid $5510 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(10) If Robert borrowed $3100 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.