How much simple interest is earned after 3 years if a person 2000 invests at 7% a year
To calculate the simple interest earned, we use the formula:
Simple Interest = (Principal) x (Rate) x (Time)
Given that the principal (P) is $2000, the rate (R) is 7% expressed as a decimal (0.07), and the time (T) is 3 years, we can substitute these values into the formula:
Simple Interest = $2000 x 0.07 x 3
Simple Interest = $420
Therefore, the amount of simple interest earned after 3 years is $420.