Question:
Charles took a loan of $5800 at the rate of 10% simple interest per annum. If he paid an amount of $11600 to clear the loan, then find the time period of the loan.
Correct Answer
10
Solution And Explanation
Solution
Given,
Principal (P) = $5800
Rate of Simple Interest (R) = 10% per annum
Amount (A) = $11600
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 = $11600 – $5800 = $5800
Thus, Simple Interest = $5800
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 × 5800/5800 × 10
= 580000/58000
= 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) = $5800
Rate of Simple Interest (R) = 10% per annum
Simple Interest = $5800 (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 $5800
= 10/100 × 5800
= 10 × 5800/100
= 58000/100 = 580
Thus, simple Interest for 1 year = $580
Now,
∵ If the simple Interest is $580, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/580 years
∴ If the simple Interest is $5800, then the time = 1/580 × 5800 years
= 1 × 5800/580 years
= 5800/580 = 10 years
Thus, time (T) = 10 years Answer
Similar Questions
(1) If Paul paid $5452 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(2) Calculate the amount due if John borrowed a sum of $3200 at 2% simple interest for 3 years.
(3) How much loan did Robert borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5865 to clear it?
(4) If Steven paid $5336 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(5) Calculate the amount due if Thomas borrowed a sum of $3800 at 9% simple interest for 4 years.
(6) Michelle had to pay $5692.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(7) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 4% simple interest.
(8) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 8% simple interest?
(9) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 7% simple interest.
(10) Margaret took a loan of $6700 at the rate of 7% simple interest per annum. If he paid an amount of $10452 to clear the loan, then find the time period of the loan.