Question

question le p = $500 r = 4% t = 3 years calculate simple interest earned.

Explanation:

Step1: Recall Simple Interest Formula

The formula for simple interest is \( I = P \times r \times t \), where \( I \) is the interest, \( P \) is the principal amount, \( r \) is the annual interest rate (in decimal), and \( t \) is the time in years.

Step2: Convert Rate to Decimal

Given \( r = 4\% \), convert it to decimal: \( r=\frac{4}{100}=0.04 \).

Step3: Substitute Values into Formula

We have \( P = 500 \), \( r = 0.04 \), and \( t = 3 \). Substitute these into the formula: \( I=500\times0.04\times3 \).

Step4: Calculate the Interest

First, calculate \( 500\times0.04 = 20 \). Then, \( 20\times3 = 60 \).

Answer:

The simple interest earned is \(\$60\).