Jessica invested $625 in an account that compounds interest annually at a rate of 6%.

Use the drop down to complete the sentence.

After 1 year, the interest in Jessica’s account is (Select)$62.50$58.50$43.50$37.50

  , and the total amount in her account is 

To calculate the interest after 1 year and the total amount in Jessica's account, we can use the formula for simple interest:

\[
\text{Interest} = P \times r
\]

where:
- $ P = 625 $ (the principal or initial investment),
- $ r = 0.06 $ (the annual interest rate of 6%).

\[
\text{Interest} = 625 \times 0.06 = 37.50
\]

Now, to find the total amount in the account after 1 year:

\[
\text{Total amount} = P + \text{Interest} = 625 + 37.50 = 662.50
\]

### Final answer:
- After 1 year, the interest in Jessica's account is **$37.50**.
- The total amount in her account is **$662.50**.

Would you like further details on how compound interest works, or any other related questions?

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Here are five questions that expand on the topic:
1. How would the interest change if the rate was 8% instead of 6%?
2. What would the total amount be after 2 years of compound interest?
3. How does simple interest differ from compound interest?
4. What if Jessica added more money after the first year? How would that affect the total?
5. How much interest would Jessica earn after 5 years with the same rate?

**Tip**: Compound interest grows faster over time because it earns interest on both the initial investment and the accumulated interest.

Jessica invested $625 in an account that compounds interest annually at a rate of 6%. After 1 year, the interest in Jessica’s account is (Select) $62.50 $58.50 $43.50 $37.50, and the total amount in her account is?

Learn how to calculate the simple interest and total amount for an initial investment of $625 at a 6% annual interest rate. This problem involves key concepts of simple interest and is suitable for students in Grades 6-8.

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