Mr. Dunn invested $1,000 at an annual interest rate of 5% for 3 years.

How much simple interest does Mr. Dunn earn after 3 years?

The formula for calculating simple interest is:

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

Where:
- $ I $ is the interest,
- $ P $ is the principal amount (\$1,000),
- $ r $ is the annual interest rate (5% = 0.05),
- $ t $ is the time in years (3 years).

Substituting the given values:

\[
I = 1000 \times 0.05 \times 3 = 150
\]

So, Mr. Dunn earns \$150 in simple interest after 3 years.

Would you like more details on this calculation or have any further questions?

Here are 5 related questions:
1. How much total amount (principal + interest) will Mr. Dunn have after 3 years?
2. How would the interest change if the rate was 6% instead of 5%?
3. What is the difference between simple interest and compound interest?
4. What would be the simple interest if the investment was made for 5 years instead of 3?
5. How does the time period affect the total interest earned?

**Tip:** In simple interest, the interest earned each year remains constant, unlike compound interest where it grows each year.

Mr. Dunn invested $1,000 at an annual interest rate of 5% for 3 years. How much simple interest does Mr. Dunn earn after 3 years?

Learn how to calculate simple interest on a $1,000 investment with a 5% annual interest rate over 3 years. Using the formula I = P × r × t, this problem helps students understand simple interest calculations, ideal for Grades 5-7.

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