Answer: $1,100 will be the interest.
Explanation: Since, we know that, Simple interest on annually rate for an initial amount P is, [tex]I=\frac{P\times r\times t}{100}[/tex]
Where,
r= rate of interest and t= number of years.
Here, P= $5,500 r= 2.5% and t=8 years.
Thus, simple interest = [tex]\frac{5500\times 2.5\times 8}{100}= 55\times 2.5\times 8=1100[/tex]
So, Simple interest is $1100.
Therefore, option B is correct.
