Simple Interest
MCQs Math

Question:     Christopher took a loan of $6000 at the rate of 6% simple interest per annum. If he paid an amount of $9600 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution And Explanation

Solution

Given,

Principal (P) = $6000

Rate of Simple Interest (R) = 6% per annum

Amount (A) = $9600

Thus, time (T) = ?

Method (1) Using Formula

Calculation of Simple Interest, when Principal and Amount are given

Formual 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 = $9600 – $6000 = $3600

Thus, Simple Interest = $3600

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 × 3600}/_{6000 × 6}

= ³⁶⁰⁰⁰⁰/₃₆₀₀₀

= 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) = $6000

Rate of Simple Interest (R) = 6% per annum

Simple Interest = $3600 (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 $6000

= ⁶/₁₀₀ × 6000

= ^{6 × 6000}/₁₀₀

= ³⁶⁰⁰⁰/₁₀₀ = 360

Thus, simple Interest for 1 year = $360

Now,

∵ If the simple Interest is $360, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₆₀ years

∴ If the simple Interest is $3600, then the time = ¹/₃₆₀ × 3600 years

= ^{1 × 3600}/₃₆₀ years

= ³⁶⁰⁰/₃₆₀ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Calculate the amount due if Karen borrowed a sum of $3950 at 5% simple interest for 3 years.

(2) If Margaret paid $5220 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(3) If Christopher borrowed $4000 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(4) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 7% simple interest for 3 years.

(5) Find the amount to be paid if John borrowed a sum of $5200 at 5% simple interest for 8 years.

(6) Calculate the amount due if Charles borrowed a sum of $3900 at 4% simple interest for 4 years.

(7) Betty took a loan of $6500 at the rate of 9% simple interest per annum. If he paid an amount of $11765 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 10% simple interest.

(9) If Kimberly paid $5022 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(10) If Thomas borrowed $3800 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.