Question:
Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $10240 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $6400
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $10240
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 = $10240 – $6400 = $3840
Thus, Simple Interest = $3840
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 × 3840/6400 × 6
= 384000/38400
= 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) = $6400
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $3840 (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 $6400
= 6/100 × 6400
= 6 × 6400/100
= 38400/100 = 384
Thus, simple Interest for 1 year = $384
Now,
∵ If the simple Interest is $384, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/384 years
∴ If the simple Interest is $3840, then the time = 1/384 × 3840 years
= 1 × 3840/384 years
= 3840/384 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
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(2) Calculate the amount due after 9 years if Elizabeth borrowed a sum of $5450 at a rate of 8% simple interest.
(3) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $10921 to clear the loan, then find the time period of the loan.
(4) If Michelle paid $5940 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(5) Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $10880 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due if Joseph borrowed a sum of $3700 at 7% simple interest for 3 years.
(7) If Charles paid $4212 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(8) Find the amount to be paid if Robert borrowed a sum of $5100 at 8% simple interest for 8 years.
(9) Calculate the amount due if John borrowed a sum of $3200 at 5% simple interest for 3 years.
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