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The problem is asking to calculate the simple interest owed for borrowing money for a certain period of time at a specific interest rate.

Here is the formula for simple interest:

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

Where:
- $ I $ is the interest.
- $ P $ is the principal amount (in this case, \$7000).
- $ r $ is the annual interest rate (3% or 0.03 as a decimal).
- $ t $ is the time period in years (1 year).

Substitute the given values:

\[
I = 7000 \times 0.03 \times 1
\]

\[
I = 210
\]

So, the simple interest owed is **\$210**.

Let me know if you'd like any further explanation or have more questions!

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**Relative Questions:**
1. How would the interest change if the principal amount was \$10,000?
2. What would be the interest if the interest rate was 5%?
3. How much interest would accumulate over 2 years instead of 1 year?
4. What if the time period was only 6 months instead of 1 year?
5. How would you calculate the total amount owed (principal + interest)?

**Tip:** Always remember to convert percentages to decimals (by dividing by 100) when using them in formulas.

The principal P is borrowed at a simple interest rate r for a period of time. Find the simple interest owed for the use of the money. P = $7000, r = 3%, t = 1 year.

Learn how to calculate the simple interest owed on a $7000 loan with a 3% interest rate over a 1-year period. This problem covers key financial concepts such as simple interest and percentage calculations, ideal for students in Grades 8-10.

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