write me a question using the simple interest formula

Here’s a question involving the simple interest formula:

**Question:**
John invests $1,200 in a savings account that offers an annual simple interest rate of 5%. How much interest will John earn after 3 years? Also, what will be the total amount in the account at the end of this period?

To solve this, you will use the simple interest formula:

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

Where:
- $I$ is the interest earned,
- $P$ is the principal amount ($1,200),
- $r$ is the annual interest rate (5% or 0.05),
- $t$ is the time in years (3 years).

Would you like a step-by-step solution or explanation for this?

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### 5 Related Questions:
1. If the interest rate changes to 6%, how much interest would John earn after 3 years?
2. How long would it take for John to earn $300 in interest at the same 5% rate?
3. If John invested $2,000 instead of $1,200, how much would he earn in 3 years?
4. What is the total amount after 3 years if the interest was compounded annually instead of using simple interest?
5. How would the interest change if the time period was reduced to 2 years?

**Tip:** Always convert percentage rates into decimals when using them in formulas! (For example, 5% becomes 0.05).

Learn how to calculate simple interest using the formula I = P × r × t with this example. John invests $1,200 at a 5% annual interest rate for 3 years. Find out how much interest he earns and the total amount in the account after 3 years. Suitable for Grades 5-7.

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