How much simple interest is earned after 3 years if a person invests $2,000 at 7 percent a year?(1 point)

Answer 1

The amount of simple interest earned can be calculated using the formula:

Interest = Principal * Rate * Time

Given that the principal amount is $2,000, the interest rate is 7% (0.07 as a decimal), and the time is 3 years, we can substitute these values into the formula:

Interest = $2,000 * 0.07 * 3

Simplifying this equation, we have:

Interest = $420

Therefore, the person would earn $420 in simple interest after 3 years.