how much interest is earned on a deposit of K2000 at simple interest of 8% per annum for 3 years?

To calculate the interest earned on a deposit using simple interest, you can use the formula:

\[
\text{Interest} = P \times r \times t
\]

Where:
- \(P\) is the principal amount (the initial deposit)
- \(r\) is the annual interest rate (expressed as a decimal)
- \(t\) is the time the money is invested for, in years

Given:
- \(P = K2000\)
- \(r = 8\% = 0.08\)
- \(t = 3\) years

Now, plug in the values:

\[
\text{Interest} = 2000 \times 0.08 \times 3
\]

\[
\text{Interest} = 2000 \times 0.24 = K480
\]

So, the interest earned on the deposit is **K480**.

Do you have any questions or need more details? Here are some related questions you might consider:

1. What is the total amount after 3 years, including the interest?
2. How does simple interest differ from compound interest?
3. What would the interest be if the rate were 10% instead of 8%?
4. How would the interest change if the deposit was made for 5 years instead of 3?
5. Can you calculate the interest earned if the rate is compounded annually?

**Tip:** For quick mental calculations, remember that simple interest can be approximated as \(\text{Interest} \approx \frac{P \times r \times t}{100}\) if dealing with whole numbers.

Learn how to calculate the interest earned on a deposit of K2000 at 8% simple interest per annum for 3 years using the simple interest formula. Get step-by-step guidance and understand the calculation process. Suitable for Grades 7-9.

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