If an amount of P30,000.00 is borrowed at a simple  interest rate of 3% per year, how much interest does it yield in 4 years?

To find the interest using simple interest, the formula is:

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

Where:
- \( I \) is the interest,
- \( P \) is the principal amount (30,000.00),
- \( r \) is the annual interest rate (3% or 0.03),
- \( t \) is the time in years (4 years).

Substituting the values into the formula:

\[
I = 30,000 \times 0.03 \times 4 = 3,600
\]

Thus, the interest yielded after 4 years is **P3,600.00**.

Would you like further details or have any questions?

Here are 5 related questions for further practice:
1. What would the total amount (principal + interest) be after 4 years?
2. How much interest would be earned if the time was extended to 6 years?
3. What is the interest rate if the interest earned in 4 years was P4,000?
4. How much interest would be earned in 2 years at the same rate?
5. What happens to the interest if the principal is doubled?

**Tip:** Simple interest grows linearly with time and principal, making it easier to predict over time.

If an amount of P30,000.00 is borrowed at a simple interest rate of 3% per year, how much interest does it yield in 4 years?

Calculate the simple interest for a principal of P30,000 at an interest rate of 3% per year over 4 years. This problem uses the formula I = P × r × t to find the interest amount of P3,600, making it suitable for students in Grades 6-8.

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