Question

What is the interest earned on $3000 at a rate of 0.04 for three years? The formula is interest equals (principal) (rate) (time) Substitute and multiply

Answer 1

Answer:

The interest after 3 years is $360

Explanation:

Given the principal amount (P) = $3000

Rate of interest (R) = 0.04

Time period (T) is given as 3 years

The Simple Interest is calculated by the formula;

$SI = Principal \times Rate of Interest \times Time$

Substituting the values in the above formula,

$SI = 3000 \times 0.04 \times 3$

SI = $360

Therefore, the interest after 3 years is $360