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10 January, 14:08

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?

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  1. 10 January, 14:10
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    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
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