Final answer:
The simple interest paid on a principal of $2620 at a rate of 3% for 5 years is $393.
Step-by-step explanation:
To find the simple interest, we use the formula: Simple Interest = Principal × Rate × Time.
Given:
- Principal = $2620
- Interest Rate = 3%
- Time = 5 years
Substituting the given values into the formula, we get:
Simple Interest = $2620 × 0.03 × 5 = $393.
Therefore, the simple interest paid to the nearest cent is $393.