If a person invests $2000 at a rate of 5% per annum simple interest, how much in

If a person invests $2000 at a rate of 5% per annum simple interest, how much interest will he earn in 3 years?

If a person invests $2000 at a rate of 5% per annum simple interest, how much interest will he earn in 3 years?

Step 1: Identify the principal amount (the initial investment). In this case, it is $2000.
Step 2: Identify the interest rate. Here, it is 5% per annum.
Step 3: Identify the time period for which the money is invested. In this case, it is 3 years.
Step 4: Use the simple interest formula: Simple Interest = Principal × Rate × Time / 100.
Step 5: Plug in the values: Simple Interest = 2000 × 5 × 3 / 100.
Step 6: Calculate the multiplication: 2000 × 5 = 10000, then 10000 × 3 = 30000.
Step 7: Divide by 100: 30000 / 100 = 300.
Step 8: The total interest earned after 3 years is $300.

Simple Interest Calculation – Understanding how to calculate simple interest using the formula: Interest = Principal × Rate × Time / 100.