I = $ 1,200,000.00
Equation:
I = Prt
Calculation:
First, converting R percent to r a decimal
r = R/100 = 3%/100 = 0.03 per year,
then, solving our equation
I = 1000000 × 0.03 × 40 = 1200000
I = $ 1,200,000.00
The simple interest accumulated
on a principal of $ 1,000,000.00
at a rate of 3% per year
for 40 years is $ 1,200,000.00.
