FINDING INTEREST EARNED:
You put $500 in a savings account. The account earns 3% simple interest per year. What is the interest earned after 3 years? what is the balance after 3 years?
I= PRT write the simple interest formula
= 500 ( 0.03)(3) substitute 500 for P, 0.03 for R and 3 for T.
= 45 multiply
so the interest earned is $45 after 3 years.
To find the balance, add the interest to the principal.
so, the balance is $500 + $45= $545 after 3 years.