If the principal amount is $2000 and the rate of interest is 5% per annum, what

If the principal amount is $2000 and the rate of interest is 5% per annum, what will be the simple interest for 3 years?

If the principal amount is $2000 and the rate of interest is 5% per annum, what will be the simple interest for 3 years?

Step 1: Identify the principal amount, which is $2000.
Step 2: Identify the rate of interest, which is 5%.
Step 3: Identify the time period, which is 3 years.
Step 4: Use the formula for simple interest: Simple Interest = (Principal * Rate * Time) / 100.
Step 5: Substitute the values into the formula: Simple Interest = (2000 * 5 * 3) / 100.
Step 6: Calculate the multiplication: 2000 * 5 = 10000, then 10000 * 3 = 30000.
Step 7: Divide the result by 100: 30000 / 100 = 300.
Step 8: The simple interest for 3 years is $300.

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