Substitute the given information. Remember to write the percent in decimal form. I = (500)(0.06)(3)
Simplify. I = 90
Check your answer. Is $90 a reasonable interest earned on $500 in 3 years? In 3 years the money earned 18%. If we rounded to 20%, the interest would have been 500(0.20) or $100. Yes, $90 is reasonable.
