Answer:
$1.50
Step-by-step explanation:
Simple interest is based on the principal amount of a loan or deposit, whereas compound interest is based on the principal amount and the interest that accumulates on it in every period.
Simple Interest = P x r x n
where P = Principal amount, r = Annual interest rate, n = Term of loan, in years
3% = 3 ÷ 100 = 0.03 so r = 0.03
Therefore, Simple Interest = 1 x 0.03 x 50 = 1.5
So the simple interest will be $1.50
