To calculate the interest Jessica earns after 1 year, we use the formula for simple interest:

$\text{Interest} = P \times r \times t$

Where:

• $P = 625$ (the principal amount),
• $r = 6\% = 0.06$ (the annual interest rate),
• $t = 1$ year.

Substituting these values:

$\text{Interest} = 625 \times 0.06 \times 1 = 37.50$

So, the interest after 1 year is $37.50.

The total amount in her account after 1 year is:

$\text{Total amount} = \text{Principal} + \text{Interest} = 625 + 37.50 = 662.50$

Thus, after 1 year:

• The interest is $37.50, and
• The total amount in her account is $662.50.

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Would you like more details or have any other questions?

5 Related Questions:

1. How would the total change if the interest was compounded semi-annually instead of annually?
2. What would be the total amount after 2 years with the same interest rate?
3. How does compound interest differ from simple interest?
4. If Jessica invested at 8% interest instead of 6%, how much would she earn after 1 year?
5. What happens to the total amount if Jessica withdraws $100 before the end of the first year?

Tip:

Compound interest grows faster over time than simple interest because it earns interest on both the initial principal and accumulated interest.