Question:
Richard took a loan of $5200 at the rate of 9% simple interest per annum. If he paid an amount of $9880 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) = 9% per annum
Amount (A) = $9880
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 = $9880 – $5200 = $4680
Thus, Simple Interest = $4680
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 × 4680/5200 × 9
= 468000/46800
= 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) = 9% per annum
Simple Interest = $4680 (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 = 9% of Principal
= 9% of $5200
= 9/100 × 5200
= 9 × 5200/100
= 46800/100 = 468
Thus, simple Interest for 1 year = $468
Now,
∵ If the simple Interest is $468, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/468 years
∴ If the simple Interest is $4680, then the time = 1/468 × 4680 years
= 1 × 4680/468 years
= 4680/468 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Find the amount to be paid if Joseph borrowed a sum of $5700 at 5% simple interest for 8 years.
(2) What amount does James have to pay after 5 years if he takes a loan of $3000 at 3% simple interest?
(3) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 7% simple interest?
(4) How much loan did Daniel borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7015 to clear it?
(5) Find the amount to be paid if Charles borrowed a sum of $5900 at 6% simple interest for 8 years.
(6) Thomas took a loan of $5600 at the rate of 8% simple interest per annum. If he paid an amount of $9184 to clear the loan, then find the time period of the loan.
(7) Donald took a loan of $7000 at the rate of 7% simple interest per annum. If he paid an amount of $11410 to clear the loan, then find the time period of the loan.
(8) How much loan did Richard borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6160 to clear it?
(9) How much loan did Daniel borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7320 to clear it?
(10) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $11780 to clear the loan, then find the time period of the loan.