Question

Sharla invests $275 in a simple interest bearing account for 16 years. The annual interest rate is 8%. Using the simple interest formula, I = P r t, how much interest will Sharla’s initial investment earn over the 16 year period?
$297
$319
$352
$627

Answer 1

I = P r t = 275(0.08)(16) = 22(16) = 352.

So the interest earned is $352.