Question

owns a bond with a principal of $10,000, an annual interest rate of 5%, and a term of 3 years, what is the total interest earned? simple interest formula $i = pcdot rcdot t$ $1,000 $500 $1,500 $2,000

Explanation:

Step1: Identify values

$P = 10000$, $r=0.05$, $t = 3$

Step2: Apply simple - interest formula

$I=P\times r\times t=10000\times0.05\times3$
$I = 1500$

Answer:

$1,500$