Question

Sharla invests $275 in a simple interest bearing account for 16 years. The annual interest rate is 8%. Using the simple interest formula, how much interest will Sharla’s initial investment earn over the 16 year period?

$297
$319
$352
$627

Answer 1

$352

Explanation:

Answer 2

$352

Explanation:

Simple interest (I) is calculated as

I =
`(PRT)/(100)`

where P is the principal ( investment), R is the rate of interest and T is time in years, thus

I =
`(275(8)(16))/(100)` = $352