Jenny opens a charity bank account. Any interest gained goes to a local charity. It pays 2% per annum simple interest. She puts £1500 into the account. She does not make any deposits or withdrawals. How much interest will the charity have received after 3 years?

The formula for calculating simple interest is:

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

Where:
- \(I\) is the interest,
- \(P\) is the principal (initial amount),
- \(r\) is the annual interest rate (as a decimal),
- \(t\) is the time in years.

In this case:
- \(P = 1500\),
- \(r = 2\%\) or 0.02 as a decimal,
- \(t = 3\) years.

Now, calculate the interest:

\[
I = 1500 \times 0.02 \times 3 = 90
\]

So, the charity will have received **£90** in interest after 3 years.

Do you want more details or have any questions?

Here are some related questions to expand on this:
1. What would be the total balance after 3 years, including the principal and interest?
2. How much interest would the charity receive after 5 years with the same rate?
3. If the interest rate were 3% instead of 2%, how much would the charity receive after 3 years?
4. What is the difference between simple and compound interest in terms of benefits to the charity?
5. How would the interest change if Jenny added more money to the account each year?

**Tip:** Simple interest is always calculated on the original principal, unlike compound interest which considers accumulated interest over time.

Calculate how much interest a charity will receive after 3 years using simple interest on a £1500 deposit at 2% per annum. Learn key concepts like the simple interest formula and basic percentage calculations, suitable for Grades 6-8.

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