Question

Investment of $3000 at 16% simple interest for two years.

Answer 1

16% of $100 is $16
16% of $1000 is $160
16% of $3000 is $480

2 years of simple interest 16% on $3000 
= $3000 + $480 + $480
= $3960

Answer 2

I=PRT
r=rat
P=present amount
I=interst
t=time in yeare

2 years
16%
3000
I=2*3000*0.16
I=$960