Question:
Karen took a loan of $5900 at the rate of 7% simple interest per annum. If he paid an amount of $10030 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $5900
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $10030
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 = $10030 – $5900 = $4130
Thus, Simple Interest = $4130
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 × 4130/5900 × 7
= 413000/41300
= 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) = $5900
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $4130 (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 = 7% of Principal
= 7% of $5900
= 7/100 × 5900
= 7 × 5900/100
= 41300/100 = 413
Thus, simple Interest for 1 year = $413
Now,
∵ If the simple Interest is $413, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/413 years
∴ If the simple Interest is $4130, then the time = 1/413 × 4130 years
= 1 × 4130/413 years
= 4130/413 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
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(2) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 2% simple interest?
(3) Betty took a loan of $6500 at the rate of 10% simple interest per annum. If he paid an amount of $12350 to clear the loan, then find the time period of the loan.
(4) James took a loan of $4000 at the rate of 10% simple interest per annum. If he paid an amount of $6400 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 8% simple interest for 7 years.
(6) Patricia had to pay $3528 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(7) Find the amount to be paid if John borrowed a sum of $5200 at 7% simple interest for 8 years.
(8) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 10% simple interest?
(9) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 2% simple interest.
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