To calculate the simple interest earned, we can use the formula:
\[ \text{Simple Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the annual interest rate (in decimal),
- \( t \) is the time the money is invested for in years.
For José's savings account:
- \( P = 1500 \) (the initial amount),
- \( r = 3% = 0.03 \) (the interest rate),
- \( t = 3 \) years.
Now we can substitute these values into the formula:
\[ \text{Simple Interest} = 1500 \times 0.03 \times 3 \]
Calculating the interest:
\[ \text{Simple Interest} = 1500 \times 0.03 = 45 \] \[ \text{Simple Interest} = 45 \times 3 = 135 \]
Therefore, the simple interest José will earn at the end of 3 years is $135.
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