Answer: To answer these questions using the simple interest formula, we need to know the values of P (the principal or initial investment), r (the interest rate), and t (the time period in years).
In this case, P = $325, r = 0.08 (8% expressed as a decimal), and t = 15.
Using the simple interest formula, I = P ∙ r ∙ t, we can calculate:
I = $325 ∙ 0.08 ∙ 15 = $390
Therefore, Charlie's initial investment will earn $390 in interest over the 15-year period.
To calculate how much money Charlie will have after the 15 years, we need to add the interest earned to the initial investment.
The total amount of money that Charlie will have after the 15 years is:
Total amount = Initial investment + Interest earned
Total amount = $325 + $390
Total amount = $715
Therefore, Charlie will have $715 after 15 years.
Explanation: