Answer:
The correct answer is D. $ 3,540
Explanation:
1. Let's review the information given to us to answer the question correctly:
Amount of the loan = $ 3,000
Interest rate = 9% annual simple interest = 0.09
Years to pay the loan = 2 years
2. What will be the total amount she pays for the car?
Total amount Madison will pay for the car = Amount of the loan * [1 + (Interest rate * Number of years)]
Total amount Madison will pay for the car = 3,000 * [1 + 0.18]
Total amount Madison will pay for the car = 3,000 * 1.18
Total amount Madison will pay for the car = 3,540
The correct answer is D. $ 3,540