Question 1090993
simple interest formula is i = p * r * n


i is the interest
p is the principal
r is the interest rate per time period
n is the number of time periods


your time period is in years.


r = .08 per year
n = 3 years.
p = 500


formula of i = p * r * n becomes i = 500 * .08 * 3 which results in i = 120.