If the principal amount is $1000, the rate of interest is 2% per year, and the time period is 3 years, what is the simple interest?

  • A. $20
  • B. $30
  • C. $60
  • D. $120
Correct Answer: C. $60
Simple Interest = (P × R × T)/100 = (1000 × 2 × 3)/100 = $60.

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