Which scenario will earn more interest?
A.$500 invested at 6% interest for 3 years.
B.$600 invested at 4% interest for 4 years.
C.$700 invested at 4% interest for 3 years.
D.$800 invested at 3% interest for 5 years.

To determine which scenario will earn more interest, we need to calculate the simple interest for each option. Simple interest is calculated using the formula:

\[
I = P \times r \times t
\]
Where:
- $ I $ = Interest earned
- $ P $ = Principal amount (initial investment)
- $ r $ = Annual interest rate (in decimal form)
- $ t $ = Time (in years)

Let's calculate the interest for each scenario:

### A. $500 invested at 6% interest for 3 years
\[
I_A = 500 \times 0.06 \times 3 = 90
\]

### B. $600 invested at 4% interest for 4 years
\[
I_B = 600 \times 0.04 \times 4 = 96
\]

### C. $700 invested at 4% interest for 3 years
\[
I_C = 700 \times 0.04 \times 3 = 84
\]

### D. $800 invested at 3% interest for 5 years
\[
I_D = 800 \times 0.03 \times 5 = 120
\]

### Comparison:
- Scenario A: $90
- Scenario B: $96
- Scenario C: $84
- Scenario D: $120

**Conclusion:**  
The scenario that will earn the most interest is **D. $800 invested at 3% interest for 5 years**, which earns $120 in interest.

Would you like a deeper explanation on how simple interest works, or do you have any questions?

Here are 5 follow-up questions:
1. How would the results change if we used compound interest instead of simple interest?
2. What if the interest rates changed after the first year? How would we calculate that?
3. How do we calculate total value after interest for each scenario?
4. What is the formula for compound interest?
5. How would inflation affect these investment scenarios?

**Tip:** Always make sure to convert the percentage into a decimal when calculating interest. Divide by 100 to do this.

Which scenario will earn more interest? A.$500 invested at 6% interest for 3 years. B.$600 invested at 4% interest for 4 years. C.$700 invested at 4% interest for 3 years. D.$800 invested at 3% interest for 5 years.

Learn how to calculate simple interest for four different investment scenarios, including $500 at 6% for 3 years, $600 at 4% for 4 years, and more. Discover which investment earns the most interest using the simple interest formula. Ideal for students in Grades 6-8.

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