To answer this question we will use the formula for simple interest:
[tex]F=I(1+rt),[/tex]where F is the final amount, I is the initial amount, r is the interest rate in decimal form, and t is the time in years.
Substituting r=0.03, I=1200, and t=3 in the above formula we get:
[tex]F=1200(1+0.03\times3)=1200(1.09)=1308.[/tex]Therefore, after 3 years you will have a total of $1308, which means you have a gain of:
[tex]1308-1200[/tex]dollars.
Answer: $108.
