Question

An amount of $8,000 is invested at a simple interest rate of 1.5%. What is the total amount after 3 years?

Answer 1

I=PRT
P=8000
R=0.015
T=3

I=8000*0.015*3=360

total amount=8000+360=$8360

Answer 2

For simple interest, the interest for each year is calculated on the initial principal itself.
So, for a period of 3 years, the total interest will be

(1.5% of 8000)×3=1.5⋅3⋅8000100=360

So the total amount at the end of the period

=Principal+Interest=8000+360=8360