Short Answer 
The process to calculate the total worth of an investment involves using the simple interest formula (I = PRT) to find the interest earned. With an initial investment of R7500 at a 9% annual interest rate over 3 years, the interest calculated is R2025, resulting in a total investment value of R9525.
Step 1: Understand the Formula
To determine how much an investment grows over time, we utilize the simple interest formula: I = PRT. In this formula:
- I represents the interest earned,
- P is the principal amount (initial investment),
- R stands for the annual interest rate, and
- T is the time in years.
Step 2: Calculate the Interest
Next, plug in the values from the investment scenario into the formula. In this case:
- Principal (P) = R7500,
- Rate (R) = 9% or 0.09,
- Time (T) = 3 years.
Perform the calculation: I = 7500 ‚à öo 0.09 ‚à öo 3 to find that the interest earned over the 3 years is R2025.
Step 3: Determine the Total Amount
Now that you have the interest, you can find out the overall worth of the investment after 3 years. This is done by adding the interest to the original principal:
- Total Amount = Principal + Interest
- Total Amount = R7500 + R2025
- The final value of the investment is R9525.
Thus, at the end of the 3-year period, the investment is worth R9525.