Stephen invests $2,500 in an account that pays 6% simple interest. How much money will Stephen have at the end of three years?

A) $2,650
B) $2,809
C) $2,950
D) $2,978
E) $3,000

Simple interest is calculated using the formula $I=P\times r\times t$ , where $I$ is the interest, $P$ is the principal amount, $r$ is the rate of interest per period, and $t$ is the time. For Stephen's investment, P = $2,500 , $r=6\%=0.06$ , and $t=3$ years. Thus, the interest earned is I = $2,500 \times 0.06 \times 3 = $450 . Adding this interest to the principal gives the total amount as P + I = $2,500 + $450 = $2,950 .