Question

What is the simple interest on $2000 invested at an annual rate of 5% over three years

Answer 1

To calculate simple interest, you can use the formula:
Interest = Principal × Rate × Time

In this case, the principal (P) is $2000, the rate (R) is 5%, and the time (T) is 3 years.

Substituting the values into the formula:
Interest = $2000 × 0.05 × 3

Calculating the expression:
Interest = $300

Therefore, the simple interest on $2000 invested at an annual rate of 5% over three years is $300.