Question

Madison is buying a $3,000 car at 9% simple interest for 2 years. What will be the total amount she pays for the car?

$3,090
$3,180
$3,270
$3,540

Answer 1

Given :

Principle amount : ₹3000

Rate of interest : 9%

Time : 2 years

To find :

The total value of Madison's investment after 2 years.

Solution :

First, we should find the simple interest

${\sf \dashrightarrow Simple \: Interest = \dfrac{P \times R \times T}{100}}$

${\sf \dashrightarrow \dfrac{3000 \times 9 \times 2}{100}}$

${\sf \dashrightarrow \dfrac{3000 \times 18}{100}}$

${\sf \dashrightarrow \cancel \dfrac{54000}{100} = 540}$

As we have found with the simple interest, now let's find our answer i.e, the total amount.

Total Amount :

${\sf \dashrightarrow Total \: Amount = Simple \: Interest + Principle}$

${\sf \dashrightarrow 540 + 3000}$

${\sf \dashrightarrow Rs.3540}$

Hence, the total amount in Madison's investment after 2 years is ₹3540.