Question

Jose put 1500 into savings account he earns 3% interest every year how much simple interest will he earn at the end of 3 years

Answer 1

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 investment),
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time the money is invested or borrowed for, in years.

Given:
- \( P = 1500 \)
- \( r = 3\% = 0.03 \)
- \( t = 3 \) years

Now, plug in the values:

\[
\text{Simple Interest} = 1500 \times 0.03 \times 3
\]

Calculating this:

\[
\text{Simple Interest} = 1500 \times 0.03 = 45
\]
\[
\text{Simple Interest} = 45 \times 3 = 135
\]

So, the simple interest earned at the end of 3 years will be **$135**.