Question:-
Donna borrowed $10,500 at a simple interest rate of 4% for 3 years to buy her new car. How much interest would Donna pay and how much is the car altogether ?
Answer:-
Given:-
[tex] \bullet [/tex] Principal (P) = $10,500
[tex] \bullet [/tex] Rate of interest (r) = 4%
[tex] \bullet [/tex] Time (t) = 3 years
To Find:-
Interest of Donna and amount of car altogether.
Solution:-
We know,
[tex] { \boxed{\rm \red {I \: = \frac{Prt}{100}}}} [/tex]
[tex] \therefore [/tex] I = [tex] \frac{10,500 \: × \: 4 \: × \: 3}{100} [/tex]
I = [tex] \frac{126,000}{100} [/tex]
I = $1260
Now,
Amount of the car = $ (10,500 + 1260)
= $ 11,760
$1260 interest would Donna pay and $11,760 is the car altogether. [Answer]
