If a person invests $1000 at a simple interest rate of 5% per annum, how much in

If a person invests $1000 at a simple interest rate of 5% per annum, how much interest will he earn in 3 years?

If a person invests $1000 at a simple interest rate of 5% per annum, how much interest will he earn in 3 years?

Step 1: Identify the principal amount (the initial investment). In this case, it is $1000.
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: Convert the interest rate from a percentage to a decimal. 5% becomes 5/100, which is 0.05.
Step 5: Use the simple interest formula: Simple Interest = Principal * Rate * Time.
Step 6: Plug in the values: Simple Interest = 1000 * 0.05 * 3.
Step 7: Calculate the interest: 1000 * 0.05 = 50, then 50 * 3 = 150.
Step 8: The total interest earned after 3 years is $150.

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