To calculate the simple interest, you can use the formula:
\[ \text{Simple Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial loan amount),
- \( r \) is the rate of interest (as a decimal),
- \( t \) is the time in years.
Given:
- \( P = 1000 \)
- \( r = 0.05 \) (5 percent as a decimal)
- \( t = 3 \)
Now plug in the values:
\[ \text{Simple Interest} = 1000 \times 0.05 \times 3 \]
Calculating this gives:
\[ \text{Simple Interest} = 1000 \times 0.15 = 150 \]
So the simple interest after 3 years is $150.
If you want to find the total amount to be paid back after 3 years, you would add the simple interest to the principal:
\[ \text{Total Amount} = P + \text{Simple Interest} = 1000 + 150 = 1150 \]
Thus, the answers are:
- Simple Interest: $150
- Total Amount: $1,150
The correct option for the simple interest is $150.