Question:
Christopher took a loan of $6000 at the rate of 9% simple interest per annum. If he paid an amount of $11400 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $6000
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $11400
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 = $11400 – $6000 = $5400
Thus, Simple Interest = $5400
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 × 5400/6000 × 9
= 540000/54000
= 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) = $6000
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $5400 (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 $6000
= 9/100 × 6000
= 9 × 6000/100
= 54000/100 = 540
Thus, simple Interest for 1 year = $540
Now,
∵ If the simple Interest is $540, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/540 years
∴ If the simple Interest is $5400, then the time = 1/540 × 5400 years
= 1 × 5400/540 years
= 5400/540 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Find the amount to be paid if Charles borrowed a sum of $5900 at 6% simple interest for 7 years.
(2) William took a loan of $5000 at the rate of 8% simple interest per annum. If he paid an amount of $9000 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 5% simple interest.
(4) Betty took a loan of $6500 at the rate of 7% simple interest per annum. If he paid an amount of $9685 to clear the loan, then find the time period of the loan.
(5) Susan took a loan of $5300 at the rate of 7% simple interest per annum. If he paid an amount of $8268 to clear the loan, then find the time period of the loan.
(6) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $6364 to clear the loan, then find the time period of the loan.
(7) Linda had to pay $3551 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(8) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 4% simple interest?
(9) What amount does William have to pay after 6 years if he takes a loan of $3500 at 4% simple interest?
(10) Matthew took a loan of $6400 at the rate of 8% simple interest per annum. If he paid an amount of $9984 to clear the loan, then find the time period of the loan.