Question

Cayden has $3,000 in a savings account collecting 3% simple interest for 5 years. How much interest has Cayden collected?

Answer 1

Simple interest formula:

A = P(rt)

Where A is the amount of interest collected, P is the principal, r is the intrest rate, and t is the time

In this case:

P = 3000

r = 3% = 0.03

t = 5

A = 3000(0.03 * 5) = 3000(0.15) = 450

Answer:

$450