SOLUTION: If $500 is invested at a rate of 4% for 3 years, find the simple interest earned and the amount.

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Question 1108533: If $500 is invested at a rate of 4% for 3 years, find the simple interest earned and the amount.
Answer by math_helper(2461) About Me  (Show Source):
You can put this solution on YOUR website!
Simple interest = principal * interest rate
I = P*r
I = 500*0.04 = 20 (so $20 per year is earned in simple interest)
For 3 years, the total simple interest earned is 3*($20) = $60.
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