Question:
Anthony took a loan of $6600 at the rate of 7% simple interest per annum. If he paid an amount of $11220 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $6600
Rate of Simple Interest (R) = 7% per annum
Amount (A) = $11220
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 = $11220 – $6600 = $4620
Thus, Simple Interest = $4620
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 × 4620/6600 × 7
= 462000/46200
= 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) = $6600
Rate of Simple Interest (R) = 7% per annum
Simple Interest = $4620 (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 $6600
= 7/100 × 6600
= 7 × 6600/100
= 46200/100 = 462
Thus, simple Interest for 1 year = $462
Now,
∵ If the simple Interest is $462, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/462 years
∴ If the simple Interest is $4620, then the time = 1/462 × 4620 years
= 1 × 4620/462 years
= 4620/462 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Calculate the amount due if Mary borrowed a sum of $3050 at 3% simple interest for 3 years.
(2) How much loan did Rebecca borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8797.5 to clear it?
(3) Thomas took a loan of $5600 at the rate of 10% simple interest per annum. If he paid an amount of $10080 to clear the loan, then find the time period of the loan.
(4) How much loan did Kenneth borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8050 to clear it?
(5) Mary took a loan of $4100 at the rate of 10% simple interest per annum. If he paid an amount of $6970 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 2% simple interest for 3 years.
(7) Calculate the amount due after 10 years if Barbara borrowed a sum of $5550 at a rate of 5% simple interest.
(8) Calculate the amount due if Patricia borrowed a sum of $3150 at 8% simple interest for 3 years.
(9) Betty took a loan of $6500 at the rate of 10% simple interest per annum. If he paid an amount of $11050 to clear the loan, then find the time period of the loan.
(10) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 10% simple interest?