Question:
David took a loan of $4800 at the rate of 6% simple interest per annum. If he paid an amount of $7680 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $4800
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $7680
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 = $7680 – $4800 = $2880
Thus, Simple Interest = $2880
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 × 2880/4800 × 6
= 288000/28800
= 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) = $4800
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $2880 (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 $4800
= 6/100 × 4800
= 6 × 4800/100
= 28800/100 = 288
Thus, simple Interest for 1 year = $288
Now,
∵ If the simple Interest is $288, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/288 years
∴ If the simple Interest is $2880, then the time = 1/288 × 2880 years
= 1 × 2880/288 years
= 2880/288 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 9% simple interest for 7 years.
(2) Calculate the amount due if Karen borrowed a sum of $3950 at 10% simple interest for 3 years.
(3) How much loan did Joseph borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6840 to clear it?
(4) How much loan did Laura borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9420 to clear it?
(5) Michael took a loan of $4600 at the rate of 8% simple interest per annum. If he paid an amount of $8280 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 2% simple interest.
(7) Calculate the amount due if John borrowed a sum of $3200 at 5% simple interest for 3 years.
(8) Calculate the amount due if Richard borrowed a sum of $3600 at 6% simple interest for 3 years.
(9) Find the amount to be paid if Thomas borrowed a sum of $5800 at 5% simple interest for 8 years.
(10) Richard took a loan of $5200 at the rate of 7% simple interest per annum. If he paid an amount of $7384 to clear the loan, then find the time period of the loan.