Answer:
$1,050 in interest
Step-by-step explanation:
recall that the formula to find simple interest is as follows:
I = Prt, where
I = Interest (we are asked to find this)
P = principal amount = given as $7000
r = interest rate = 5% = 0.05
t = time = 3 years
Substituting the known values into the equation,
I = Prt
= (7000)(0.05)(3)
= $1,050 in interest
