Question

Calculate the simple interest earned on a deposit of $3,000 at 6% for 5 years.

Answer 1

The simple interest formula is

i = p*r*t

where,
i = simple interest earned
p = principal (amount deposited)
r = interest rate in decimal form
t = time in years

In this case,
i = unknown for now
p = 3000
r = 0.06 (since 6% = 6/100 = 0.06)
t = 5

Let's plug in those three given values to get

i = p*r*t
i = 3000*0.06*5
i = 900

Final Answer: 900 dollars