Question

Investment of 3000 at 5% simple interest rate for 20 years

Answer 1

$3000

Explanation:

Use formula for simple interest

`I=P\cdot i\cdot t,`

where I is interest, P is total principal, i is rate of interest per year (as decimal) and t is total time in years.

In your case, P=$3000, i=0.05, t=20, then

`I=3000\cdot 0.05\cdot 20=\$3000.`