Question

Find the simple interest earned after 5 years on $600 at an interest rate of 3%.


$90


$60


$50


$6

Answer 1

To calculate the simple interest earned, you can use the formula:

\[
\text{Interest} = P \times r \times t
\]

Where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time the money is invested or borrowed for, in years.

Here, the values are:
- \( P = 600 \) (the amount of money),
- \( r = 3\% = 0.03 \) (the interest rate as a decimal),
- \( t = 5 \) (the time in years).

Now, plug in the values:

\[
\text{Interest} = 600 \times 0.03 \times 5
\]

Calculating this step by step:

1. Calculate \( 600 \times 0.03 = 18 \).
2. Now multiply that result by 5: \( 18 \times 5 = 90 \).

So, the simple interest earned after 5 years is **$90**.

The correct answer is \(\$90\).