How much simple interest is earned after 3 years if a

person invests $2,000 at 7 percent a year? (1 point)

1 answer

To find the simple interest earned after 3 years, we can use the formula:

Simple Interest = Principal * Rate * Time

Here, the principal (P) is $2,000, the rate (R) is 7%, and the time (T) is 3 years.

Substituting the values into the formula, we get:

Simple Interest = $2,000 * 0.07 * 3
= $420

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