Question:
Robert took a loan of $4200 at the rate of 10% simple interest per annum. If he paid an amount of $8400 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $4200
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $8400
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 = $8400 – $4200 = $4200
Thus, Simple Interest = $4200
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 × 4200/4200 × 10
= 420000/42000
= 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) = $4200
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $4200 (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 = 10% of Principal
= 10% of $4200
= 10/100 × 4200
= 10 × 4200/100
= 42000/100 = 420
Thus, simple Interest for 1 year = $420
Now,
∵ If the simple Interest is $420, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/420 years
∴ If the simple Interest is $4200, then the time = 1/420 × 4200 years
= 1 × 4200/420 years
= 4200/420 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) If Margaret paid $4698 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(2) Mark had to pay $4664 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(3) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 9% simple interest?
(4) Find the amount to be paid if Jessica borrowed a sum of $5750 at 8% simple interest for 8 years.
(5) Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 7% simple interest.
(6) How much loan did Robert borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6120 to clear it?
(7) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 6% simple interest?
(8) Lisa took a loan of $6100 at the rate of 6% simple interest per annum. If he paid an amount of $9028 to clear the loan, then find the time period of the loan.
(9) Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $9856 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Robert borrowed a sum of $5100 at 5% simple interest for 7 years.