What is the simple interest on $2000 invested at an annual rate of 5% over three years
To calculate simple interest, you can use the formula:
Interest = Principal × Rate × Time
In this case, the principal (P) is $2000, the rate (R) is 5%, and the time (T) is 3 years.
Substituting the values into the formula:
Interest = $2000 × 0.05 × 3
Calculating the expression:
Interest = $300
Therefore, the simple interest on $2000 invested at an annual rate of 5% over three years is $300.
To calculate the simple interest, you can use the formula:
Simple Interest = Principal (amount invested) × Rate × Time
In this case:
Principal = $2000
Rate = 5% or 0.05 (in decimal form)
Time = 3 years
Substituting the values into the formula:
Simple Interest = $2000 × 0.05 × 3
Calculating the simple interest:
Simple Interest = $300
Therefore, the simple interest on $2000 invested at an annual rate of 5% over three years is $300.