mcqs Math Simple Interest Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $13110 to clear the loan, then find the time period of the loan. 8016

Question: Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $13110 to clear the loan, then find the time period of the loan.

(A)  7.5
(B)  12.5
(C)  10
(D)  15

Correct Answer 10

Solution And Explanation

Solution

Given,

Principal (P) = $6900

Rate of Simple Interest (R) = 9% per annum

Amount (A) = $13110

Thus, time (T) = ?

Method (1) Using Formula

We know that, Amount (A) = Principal (P) + Simple Interest (SI)

⇒ Simple Interest (SI) = Amount – Principal

⇒ SI = $13110 – $6900 = $6210

Thus, Simple Interest = $6210

Time (T) = ^{100 × Simple Interest}/_{Principal × Rate of Interest}

⇒ T = ^{100 × SI}/_{P × R}

Thus, Time (T) = ^{100 × 6210}/_{6900 × 9}

= ⁶²¹⁰⁰⁰/₆₂₁₀₀

= 10 years (using formula)

Thus, Time (T) = 10 years (from time taken before calculation)Answer

Here, we have

Principal (P) = $6900

Rate of Simple Interest (R) = 9% per annum

Simple Interest = $6210 (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 $6900

= ⁹/₁₀₀ × 6900

= ^{9 × 6900}/₁₀₀

= ⁶²¹⁰⁰/₁₀₀ = 621

Thus, simple Interest for 1 year = $621

Now,

∵ If the simple Interest is $621, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₂₁ years

∴ If the simple Interest is $6210, then the time = ¹/₆₂₁ × 6210 years

= ^{1 × 6210}/₆₂₁ years

= ⁶²¹⁰/₆₂₁ = 10 years

Thus, time (T) = 10 years Answer