To calculate the simple interest, we can use the formula:
Simple Interest (SI) = Principal (P) × Rate of Interest (R) × Time (T) / 100
Here, the principal amount (P) is Rs 1000, the rate of interest (R) is 5%, and the time period (T) is 3 years.
Plugging these values into the formula, we get:
SI = 1000 × 5 × 3 / 100
SI = 150
So, the simple interest for a loan of Rs 1000 at 5% interest after 3 years is Rs 150.
This means that if you take a loan of Rs 1000 at an interest rate of 5% for 3 years, you will pay an additional Rs 150 as interest on top of the principal amount.