Question:
Mark took a loan of $6800 at the rate of 8% simple interest per annum. If he paid an amount of $12240 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $6800
Rate of Simple Interest (R) = 8% per annum
Amount (A) = $12240
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 = $12240 – $6800 = $5440
Thus, Simple Interest = $5440
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 × 5440/6800 × 8
= 544000/54400
= 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) = $6800
Rate of Simple Interest (R) = 8% per annum
Simple Interest = $5440 (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 $6800
= 8/100 × 6800
= 8 × 6800/100
= 54400/100 = 544
Thus, simple Interest for 1 year = $544
Now,
∵ If the simple Interest is $544, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/544 years
∴ If the simple Interest is $5440, then the time = 1/544 × 5440 years
= 1 × 5440/544 years
= 5440/544 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Susan took a loan of $5300 at the rate of 9% simple interest per annum. If he paid an amount of $9593 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 9% simple interest for 8 years.
(3) Ashley had to pay $5232.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(4) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 8% simple interest?
(5) Find the amount to be paid if Mary borrowed a sum of $5050 at 8% simple interest for 7 years.
(6) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $7810 to clear the loan, then find the time period of the loan.
(7) Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $6552 to clear the loan, then find the time period of the loan.
(8) Mary had to pay $3324.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(9) Find the amount to be paid if Susan borrowed a sum of $5650 at 3% simple interest for 8 years.
(10) David took a loan of $4800 at the rate of 6% simple interest per annum. If he paid an amount of $7104 to clear the loan, then find the time period of the loan.