Sara has $3000 to invest for 2 years.
She invests the money in a bank which pays simple interest at the rate of 7.5% per year. Calculate how much interest she will have at the end of the 2 years.

To calculate the interest earned with simple interest, we use the formula:

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

Where:
- $I$ is the interest,
- $P$ is the principal amount (initial investment),
- $r$ is the annual interest rate (in decimal form),
- $t$ is the time in years.

For Sara:
- $P = 3000$ dollars,
- $r = 7.5\% = 0.075$,
- $t = 2$ years.

Now, substitute the values into the formula:

\[
I = 3000 \times 0.075 \times 2
\]

\[
I = 450
\]

So, Sara will earn **$450** in interest at the end of the 2 years.

Would you like further details on how the simple interest formula works or have any other questions?

Here are some related questions to explore:
1. What would be the total amount Sara has after 2 years, including the interest?
2. How would the result change if the interest rate was compounded instead of simple?
3. What if the interest rate was 6% instead of 7.5%?
4. How much interest would Sara earn if the time period was 5 years?
5. What is the difference between simple interest and compound interest?

**Tip:** Simple interest is easy to calculate but doesn’t account for interest earned on previous interest, unlike compound interest.

Sara has $3000 to invest for 2 years. She invests the money in a bank which pays simple interest at the rate of 7.5% per year. Calculate how much interest she will have at the end of the 2 years.

Learn how to calculate the simple interest on a $3000 investment at a 7.5% annual rate over 2 years. Using the simple interest formula I = P × r × t, this problem explains how to determine the total interest earned, ideal for students in Grades 5-7.

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