Question

If you start with a principal amount of $150 and the simple interest rate is 3%. What will the

interest amount be after three years? *

Answer 1

principal=$150

Rate =3%

time =3years

then formula to find interest =PTR divide by 100

=150*3*3/100

=13.5

is the correct answer

Answer 2

`\boxed {\boxed {\sf \$ 13.50}}`

Explanation:

Simple interest can be found using the following formula:

`I=p*r*t`

where p is the principal, i is the interest rate as a decimal, and t is the time.

The principal amount is $150. The interest rate is 3%. The time is 3 years.

• Convert the interest rate to a decimal. Divide 3 by 100 or move the decimal place to spots to the left.
• 3/100= 0.03
• 3.0 --> 0.3 --> 0.03

`p= 150 \\r= 0.03 \\t= 3`

Substitute the values into the formula.

`I=150*0.03*3`

Multiply.

`I=13.5`

`I=\$13.50`

The interest amount is $13.50

The total amount of money is $163.50. (principal + interest = 150.0 + 13.50 = 163.50)