To calculate the simple interest earned over a period of time, you can use the formula:
\[ \text{Simple Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (initial amount of money),
- \( r \) is the annual interest rate (as a decimal),
- \( t \) is the time in years.
In this case:
- \( P = 1500 \)
- \( r = 3% = 0.03 \)
- \( t = 3 \)
Now, plug these values into the formula:
\[ \text{Simple Interest} = 1500 \times 0.03 \times 3 \]
Calculating this step-by-step:
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Calculate \( 1500 \times 0.03 \): \[ 1500 \times 0.03 = 45 \]
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Now multiply by 3: \[ 45 \times 3 = 135 \]
So, the simple interest José will earn at the end of 3 years is $135.00.
The correct answer is $135.00.