In order to calculate the simple interest generated, we can use the following formula:
[tex]I=P\cdot i\cdot t[/tex]
Where I is the interest, P is the principal (initial amount), i is the interest rate and t is the amount of time.
Using P = 3000, i = 0.04 and t = 3, we have:
[tex]\begin{gathered} I=3000\cdot0.04\cdot3 \\ I=360 \end{gathered}[/tex]
So the interest generated is $360.
