The simple interest I on a principal of P dollars at interest rate of r for a rime t, is given by I=Prt?

Question

Find the simple interest on a principal of $60000 at 3% for 2 years.

Answer 1

I = prt

I = (60000)(.03)(2)

punch it all into a calculator and you should get

3600

Answer 2

60,000 * 0.03 * 2 = 3,600; This is simple interest, I think.

Or,
60,000 * 0.03 = 1,800 First year
61,800 * 0.03 = 1,854 Second year

63,654; This is componded interest