Gavin deposited $516 into a special savings account that earns 6.25% interest after 1 year. If Gavin doesn't deposit any money into the account or withdraw any money from the account, how much interest will he earn after the first year?

Show your work.

The amount of interest earned after a year is $32.25

Step-by-step explanation:

In this question, we are asked to calculate the amount of interest generated by depositing a sum into an account.

To calculate the interest earned, we use the simple interest formula.

Mathematically;

I = PRT/100

where I is the interest earned

R is the rate which is 6.25% according to the question

T is the time taken which is 1 year

P is the amount of money deposited also know. as the principal which is $516

Plugging these values we have

I = (516 * 6.25 * 1) / 100 = $32.25