Sharla invests $275 in a simple interest bearing account for 16 years. the annual interest rate is 8%. using the simple interest formula, mc001-1.jpg, how much interest will sharla’s initial investment earn over the 16 year period?

The formula to be followed for the calculation of simple interest is F = P (1 + in) where F is the future worth, P is the present worth, i s the annual interest rate and n is the number of years. In this case, F = $275 * (1+ 0.08*16)  = $627. The interest earned is $627  - $275 equal to $352.