Question:
Charles took a loan of $5800 at the rate of 10% simple interest per annum. If he paid an amount of $11020 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $5800
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $11020
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 = $11020 – $5800 = $5220
Thus, Simple Interest = $5220
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 × 5220/5800 × 10
= 522000/58000
= 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) = $5800
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $5220 (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 $5800
= 10/100 × 5800
= 10 × 5800/100
= 58000/100 = 580
Thus, simple Interest for 1 year = $580
Now,
∵ If the simple Interest is $580, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/580 years
∴ If the simple Interest is $5220, then the time = 1/580 × 5220 years
= 1 × 5220/580 years
= 5220/580 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 5% simple interest for 8 years.
(2) Donald took a loan of $7000 at the rate of 7% simple interest per annum. If he paid an amount of $11900 to clear the loan, then find the time period of the loan.
(3) James took a loan of $4000 at the rate of 9% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.
(4) What amount will be due after 2 years if William borrowed a sum of $3250 at a 6% simple interest?
(5) In how much time a principal of $3150 will amount to $3402 at a simple interest of 2% per annum?
(6) If Steven paid $4968 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(7) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $10800 to clear the loan, then find the time period of the loan.
(8) How much loan did Robert borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6375 to clear it?
(9) Calculate the amount due if Jennifer borrowed a sum of $3250 at 7% simple interest for 4 years.
(10) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 5% simple interest?