If an amount of 30,000 is borrowed at interest rate of 3percent, per year, how much interest does it yield in a year

To calculate the interest earned in one year for a principal amount of \$30,000 at an interest rate of 3% per year, we can use the formula for simple interest:

\[
I = P \times r \times t
\]

Where:
- $I$ is the interest,
- $P$ is the principal amount (\$30,000),
- $r$ is the annual interest rate (3% or 0.03),
- $t$ is the time period in years (1 year).

Substituting the values:

\[
I = 30,000 \times 0.03 \times 1
\]

\[
I = 900
\]

So, the interest earned in one year is \$900.

Would you like more details or have any questions?

Here are 5 related questions:
1. What will the total amount be after 1 year, including the interest?
2. How does the interest change if the rate is compounded instead of simple interest?
3. What will the interest be after 5 years at the same interest rate?
4. How much would the interest be if the principal were \$50,000 at the same rate?
5. How does increasing the time to 2 years affect the total interest earned?

**Tip:** Simple interest depends only on the principal, interest rate, and time, while compound interest depends on the frequency of compounding.

If an amount of 30,000 is borrowed at interest rate of 3 percent per year, how much interest does it yield in a year?

Learn how to calculate simple interest for a principal amount of $30,000 at an annual interest rate of 3%. This detailed solution explains the formula and shows that the interest earned in one year is $900. Suitable for students in Grades 6-8.

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