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?

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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

   [tex]{\sf \dashrightarrow Simple \: Interest = \dfrac{P \times R \times T}{100}}[/tex]

   [tex]{\sf \dashrightarrow \dfrac{3000 \times 9 \times 2}{100}}[/tex]

   [tex]{\sf \dashrightarrow \dfrac{3000 \times 18}{100}}[/tex]

   [tex]{\sf \dashrightarrow \cancel \dfrac{54000}{100} = 540}[/tex]

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

   Total Amount :

   [tex]{\sf \dashrightarrow Total \: Amount = Simple \: Interest + Principle}[/tex]

   [tex]{\sf \dashrightarrow 540 + 3000}[/tex]

   [tex]{\sf \dashrightarrow Rs.3540}[/tex]

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

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