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Let's go through the problem step by step.

### Given:
- **Principal (P)** = \$400
- **Annual interest rate (r)** = 6% = 0.06
- **Time (t)** = 3 years
- Interest is **simple interest**.

### Simple Interest Formula:
\[
I = P \times r \times t
\]
Where:
- $ I $ is the interest earned,
- $ P $ is the principal amount,
- $ r $ is the annual interest rate (decimal),
- $ t $ is the time the money is invested (in years).

### (a) How much total interest will Lisa earn?
Substitute the values:
\[
I = 400 \times 0.06 \times 3
\]

### (b) What will the total amount in the account be (including interest)?
The total amount, $ A $, is calculated as:
\[
A = P + I
\]
Let me calculate these values for you.### (a) The total interest Lisa will earn is \$72.  
### (b) The total amount in the account, including interest, will be \$472.

Would you like further details or have any questions?

Here are 5 related questions to expand on this topic:
1. How would the total interest change if the interest rate was compounded annually?
2. What would happen if the interest rate was 8% instead of 6%?
3. How much interest would Lisa earn if she saved for 5 years instead of 3?
4. What formula would apply if Lisa made additional monthly deposits to the account?
5. How does compound interest differ from simple interest in long-term savings?

**Tip**: Simple interest is beneficial for short-term savings, but compound interest tends to generate more wealth over longer periods.

To be able to buy a new computer, Lisa decides to save for 3 years. She opens a savings account with $400. The account pays simple interest at an annual rate of 6%. She doesn't make any more deposits.
(a) How much total interest will Lisa earn?
(b) What will the total amount in the account be (including interest)?

Learn how to calculate simple interest on a $400 savings account at 6% annual interest over 3 years. This detailed solution explains the simple interest formula, showing how to calculate both the total interest earned and the final account balance. Suitable for students in Grades 6-8.

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