Answer:
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
