I think you might have several concepts confused here.
A php file is interpreted, and often turned into HTML. PHP is not a content type. You can't "display an image in a php file." You can however program it to display an image in a certain medium. In this case, it looks like you want to display it in html. Here are some related examples that should help you:
PHP Code:
<?php
// This is a php script...
// let's revert to basic html to display the image
?>
<img src="/testpic.jpg" width="350" height="350" />
<?php
// Finish whatever we need to do
?>
Or...
PHP Code:
<?php
// This is our php script...
// Print that image...
echo "<img src=\"/testpic.jpg\" width=\"350\" height=\"350\" />";
// Finish whatever we need to do
?>
Or...
PHP Code:
<?php
$filename = "/testpic.jpg";
$width = 350;
$height = 350;
// print that image
echo "<img src=\"" . $filename . "\" width=\"" . $width . "\" height=\"" . $height . "\" />";
?>
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