1. **State the problem:** Calculate the simple interest earned and the future value of an investment of 7000 for 3 years at an annual simple interest rate of 16%. 2. **Formula for simple interest:** $$I = P \times r \times t$$ where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. 3. **Calculate the interest:** Convert the interest rate to decimal: $r = 16\% = 0.16$. $$I = 7000 \times 0.16 \times 3$$ $$I = 7000 \times 0.48$$ $$I = 3360$$ So, the interest earned is 3360. 4. **Calculate the future value:** The future value $FV$ is the sum of the principal and the interest: $$FV = P + I$$ $$FV = 7000 + 3360$$ $$FV = 10360$$ **Final answers:** a) Interest earned = 3360 b) Future value = 10360