How much simple interest is earned after 3 years if a person invests $2,000 at 7 percent a year?
The formula to calculate simple interest is:
Simple Interest = Principle Amount x Rate x Time
Given:
Principle Amount (P) = $2,000
Rate (R) = 7% = 0.07
Time (T) = 3 years
Plugging these values into the formula, we can find the simple interest:
Simple Interest = 2000 x 0.07 x 3
= $<<2000*0.07*3=420>>420
Therefore, the person will earn $420 in simple interest after 3 years.