Simple Interest
MCQs Math

Question:     Anthony took a loan of $6600 at the rate of 8% simple interest per annum. If he paid an amount of $11880 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) = 8% per annum

Amount (A) = $11880

Thus, time (T) = ?

Method (1) Using Formula

Calculation of Simple Interest, when Principal and Amount are given

Formual 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 = $11880 – $6600 = $5280

Thus, Simple Interest = $5280

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 × 5280}/_{6600 × 8}

= ⁵²⁸⁰⁰⁰/₅₂₈₀₀

= 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) = 8% per annum

Simple Interest = $5280 (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 $6600

= ⁸/₁₀₀ × 6600

= ^{8 × 6600}/₁₀₀

= ⁵²⁸⁰⁰/₁₀₀ = 528

Thus, simple Interest for 1 year = $528

Now,

∵ If the simple Interest is $528, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₅₂₈ years

∴ If the simple Interest is $5280, then the time = ¹/₅₂₈ × 5280 years

= ^{1 × 5280}/₅₂₈ years

= ⁵²⁸⁰/₅₂₈ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 9% simple interest.

(2) What amount does Michael have to pay after 5 years if he takes a loan of $3300 at 2% simple interest?

(3) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 8% simple interest?

(4) How much loan did Joseph borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7125 to clear it?

(5) Matthew took a loan of $6400 at the rate of 8% simple interest per annum. If he paid an amount of $9472 to clear the loan, then find the time period of the loan.

(6) Find the amount to be paid if Susan borrowed a sum of $5650 at 2% simple interest for 8 years.

(7) What amount does James have to pay after 5 years if he takes a loan of $3000 at 4% simple interest?

(8) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $12040 to clear the loan, then find the time period of the loan.

(9) Find the amount to be paid if Barbara borrowed a sum of $5550 at 10% simple interest for 8 years.

(10) If Michelle paid $5940 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.