• P is the principal amount, $3000.00.
• r is the interest rate, 6% per year, or in decimal form, 6/100=0.06.
• t is the time involved, 8 years time periods.
• So, t is 8 year time periods.
To find the simple interest, we multiply 3000 × 0.06 × 8 to get that:
The interest is: $1440.00
