Question:
Richard took a loan of $5200 at the rate of 8% simple interest per annum. If he paid an amount of $9360 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $5200
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $9360
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 = $9360 – $5200 = $4160
Thus, Simple Interest = $4160
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 × 4160/5200 × 8
= 416000/41600
= 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) = $5200
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $4160 (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 = 8% of Principal
= 8% of $5200
= 8/100 × 5200
= 8 × 5200/100
= 41600/100 = 416
Thus, simple Interest for 1 year = $416
Now,
∵ If the simple Interest is $416, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/416 years
∴ If the simple Interest is $4160, then the time = 1/416 × 4160 years
= 1 × 4160/416 years
= 4160/416 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Nancy took a loan of $6300 at the rate of 6% simple interest per annum. If he paid an amount of $8946 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due if Jessica borrowed a sum of $3750 at 10% simple interest for 3 years.
(3) Find the amount to be paid if John borrowed a sum of $5200 at 5% simple interest for 7 years.
(4) If Mary borrowed $3050 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(5) If Christopher paid $4800 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(6) Find the amount to be paid if Thomas borrowed a sum of $5800 at 5% simple interest for 8 years.
(7) How much loan did Ryan borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9875 to clear it?
(8) Sarah took a loan of $5700 at the rate of 6% simple interest per annum. If he paid an amount of $9120 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Patricia borrowed a sum of $5150 at 2% simple interest for 7 years.
(10) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.