Question:
Betty took a loan of $6500 at the rate of 8% simple interest per annum. If he paid an amount of $11700 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $6500
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $11700
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 = $11700 – $6500 = $5200
Thus, Simple Interest = $5200
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 × 5200/6500 × 8
= 520000/52000
= 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) = $6500
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $5200 (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 $6500
= 8/100 × 6500
= 8 × 6500/100
= 52000/100 = 520
Thus, simple Interest for 1 year = $520
Now,
∵ If the simple Interest is $520, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/520 years
∴ If the simple Interest is $5200, then the time = 1/520 × 5200 years
= 1 × 5200/520 years
= 5200/520 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $10710 to clear the loan, then find the time period of the loan.
(2) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 2% simple interest?
(3) In how much time a principal of $3150 will amount to $3465 at a simple interest of 5% per annum?
(4) Calculate the amount due if Richard borrowed a sum of $3600 at 4% simple interest for 4 years.
(5) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 7% simple interest?
(6) Matthew took a loan of $6400 at the rate of 7% simple interest per annum. If he paid an amount of $9984 to clear the loan, then find the time period of the loan.
(7) Find the amount to be paid if Patricia borrowed a sum of $5150 at 7% simple interest for 8 years.
(8) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 10% simple interest?
(9) Christopher took a loan of $6000 at the rate of 10% simple interest per annum. If he paid an amount of $10200 to clear the loan, then find the time period of the loan.
(10) Susan took a loan of $5300 at the rate of 9% simple interest per annum. If he paid an amount of $8162 to clear the loan, then find the time period of the loan.