An amount of $2500 is invested at a simple interest rate of 3% per annum - HSC - SSCE Mathematics Standard - Question 3 - 2023 - Paper 1

The formula for simple interest is given by:

$I = P imes r imes t$

where:

• $I$ is the interest earned,
• $P$ is the principal amount ($2500),
• $r$ is the rate of interest per annum (3% or 0.03), and
• $t$ is the time in years (2 years).

Substituting the values, we get:

$I = 2500 imes 0.03 imes 2$

Calculating this gives:

$I = 2500 imes 0.06 = 150$