mcqs Math Simple Interest Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $10560 to clear the loan, then find the time period of the loan. 7920

Question: Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $10560 to clear the loan, then find the time period of the loan.

(A)  7.5
(B)  12.5
(C)  10
(D)  15

Correct Answer 10

Solution And Explanation

Solution

Given,

Principal (P) = $6600

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

Amount (A) = $10560

Thus, time (T) = ?

Method (1) Using Formula

We know that, Amount (A) = Principal (P) + Simple Interest (SI)

⇒ Simple Interest (SI) = Amount – Principal

⇒ SI = $10560 – $6600 = $3960

Thus, Simple Interest = $3960

Time (T) = ^{100 × Simple Interest}/_{Principal × Rate of Interest}

⇒ T = ^{100 × SI}/_{P × R}

Thus, Time (T) = ^{100 × 3960}/_{6600 × 6}

= ³⁹⁶⁰⁰⁰/₃₉₆₀₀

= 10 years (using formula)

Thus, Time (T) = 10 years (from time taken before calculation)Answer

Here, we have

Principal (P) = $6600

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

Simple Interest = $3960 (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 $6600

= ⁶/₁₀₀ × 6600

= ^{6 × 6600}/₁₀₀

= ³⁹⁶⁰⁰/₁₀₀ = 396

Thus, simple Interest for 1 year = $396

Now,

∵ If the simple Interest is $396, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₉₆ years

∴ If the simple Interest is $3960, then the time = ¹/₃₉₆ × 3960 years

= ^{1 × 3960}/₃₉₆ years

= ³⁹⁶⁰/₃₉₆ = 10 years

Thus, time (T) = 10 years Answer