Question:
Jennifer took a loan of $4500 at the rate of 6% simple interest per annum. If he paid an amount of $7200 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $4500
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $7200
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 = $7200 – $4500 = $2700
Thus, Simple Interest = $2700
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 × 2700/4500 × 6
= 270000/27000
= 10 years (using formula)
Thus, Time (T) = 10 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) = $4500
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $2700 (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 = 6% of Principal
= 6% of $4500
= 6/100 × 4500
= 6 × 4500/100
= 27000/100 = 270
Thus, simple Interest for 1 year = $270
Now,
∵ If the simple Interest is $270, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/270 years
∴ If the simple Interest is $2700, then the time = 1/270 × 2700 years
= 1 × 2700/270 years
= 2700/270 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
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(2) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $8280 to clear the loan, then find the time period of the loan.
(3) What amount will be due after 2 years if Mark borrowed a sum of $3700 at a 9% simple interest?
(4) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $11560 to clear the loan, then find the time period of the loan.
(5) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 7% simple interest?
(6) 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.
(7) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 7% simple interest?
(8) If Matthew paid $4536 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(9) Calculate the amount due if Thomas borrowed a sum of $3800 at 8% simple interest for 3 years.
(10) William took a loan of $5000 at the rate of 9% simple interest per annum. If he paid an amount of $8150 to clear the loan, then find the time period of the loan.