If you invest $1000 at an interest rate of 5% per year, how much will you have after 3 years?

To find out how much money you will have after 3 years with an initial investment of $1000 at an interest rate of 5% per year, you can use the formula for simple interest, which is:

Total Amount = Principal + (Principal × Interest Rate × Time)

Here, the principal (initial investment) is $1000, the interest rate is 5% (or 0.05 in decimal form), and the time period is 3 years.

First, calculate the interest earned over 3 years:

Interest = Principal × Interest Rate × Time
Interest = $1000 × 0.05 × 3
Interest = $1000 × 0.15
Interest = $150

Now, add the interest earned to the principal to find the total amount after 3 years:

Total Amount = Principal + Interest
Total Amount = $1000 + $150
Total Amount = $1150

Therefore, after 3 years, the total amount you will have is $1150. This matches the first answer choice, confirming that it is the correct answer.

This approach clearly shows how to calculate the total amount with simple interest over a specified time, demonstrating the cumulative effect of the interest rate on