Question

If you invest $1600 at 5% for 3 years, how much simple interest is earned?

Answer 1

$240

Explanation:

S.I=PRT/100

P=$1600

R=5%

T=3

S.I =1600*5*3/100

S.I=$240

Answer 2

5% of 1600 is $80.

You will get $80 added to your account every year for 3 years

You will earn $240 in simple interest.