1. The problem states that Sally inherits 8800 and invests it at an interest rate of 2.5% per year. 2. To find the interest earned in the first year, we use the formula for simple interest: $$\text{Interest} = \text{Principal} \times \text{Rate}$$ 3. Here, the principal is 8800 and the rate is 2.5%, which as a decimal is $$\frac{2.5}{100} = 0.025$$. 4. Calculate the interest: $$8800 \times 0.025 = 220$$. 5. Therefore, Sally earns 220 in interest in the first year. 6. Among the options given (£175, £250, £88, None of these, I don't know), the correct answer is "None of these" because 220 is not listed.