Question:
Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $11590 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $6100
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $11590
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 = $11590 – $6100 = $5490
Thus, Simple Interest = $5490
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 × 5490/6100 × 9
= 549000/54900
= 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) = $6100
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $5490 (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 $6100
= 9/100 × 6100
= 9 × 6100/100
= 54900/100 = 549
Thus, simple Interest for 1 year = $549
Now,
∵ If the simple Interest is $549, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/549 years
∴ If the simple Interest is $5490, then the time = 1/549 × 5490 years
= 1 × 5490/549 years
= 5490/549 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) Calculate the amount due if Charles borrowed a sum of $3900 at 3% simple interest for 4 years.
(2) Elizabeth had to pay $3760.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(3) Find the amount to be paid if John borrowed a sum of $5200 at 4% simple interest for 7 years.
(4) Richard took a loan of $5200 at the rate of 7% simple interest per annum. If he paid an amount of $7384 to clear the loan, then find the time period of the loan.
(5) How much loan did Matthew borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7440 to clear it?
(6) Calculate the amount due if Richard borrowed a sum of $3600 at 9% simple interest for 4 years.
(7) Nancy took a loan of $6300 at the rate of 7% simple interest per annum. If he paid an amount of $10710 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if John borrowed a sum of $3200 at 4% simple interest for 4 years.
(9) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 6% simple interest?
(10) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 10% simple interest?