Question:
Sarah took a loan of $5700 at the rate of 8% simple interest per annum. If he paid an amount of $10260 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $5700
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $10260
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 = $10260 – $5700 = $4560
Thus, Simple Interest = $4560
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 × 4560/5700 × 8
= 456000/45600
= 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) = $5700
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $4560 (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 $5700
= 8/100 × 5700
= 8 × 5700/100
= 45600/100 = 456
Thus, simple Interest for 1 year = $456
Now,
∵ If the simple Interest is $456, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/456 years
∴ If the simple Interest is $4560, then the time = 1/456 × 4560 years
= 1 × 4560/456 years
= 4560/456 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 6% simple interest for 3 years.
(2) How much loan did Matthew borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6820 to clear it?
(3) Nancy had to pay $4523.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(4) Calculate the amount due if Richard borrowed a sum of $3600 at 10% simple interest for 4 years.
(5) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 7% simple interest.
(6) How much loan did Linda borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6687.5 to clear it?
(7) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 5% simple interest.
(8) Nancy took a loan of $6300 at the rate of 9% simple interest per annum. If he paid an amount of $10269 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Mary borrowed a sum of $5050 at 7% simple interest for 8 years.
(10) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 8% simple interest?