Question

If the principal is $350 and the interest rate is 3 percent, what is the simple interest earned in one year?
Simple interest = P × r × t

Answer 1

P=350$
r=3%=0,03
t=1 year

Simple interest= Prt= 350*0,03*1=10,5 $

Answer 2

We use the simple interest equation to solve the rate earned per year of the principal amount given. The simple interest rate equation is expressed as:

Simple interest = P × r × t
Simple interest = 350 × 0.03 × 1
Simple interest = $10.5

The simple interest rate earned in one year is $10.5.