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Franklin deposited $1,400 in a savings account that accrues simple interest at 6.75%. What is the balance in his account at the beginning of the third quarter?
P = Po + Po*r*t.
P = 1400 + 1400*0.0675*0.5 = $1447.25.
NOTE: The beginning of the 3rd quarter is the end of the 2nd qtr.
One thousand dollars in a savings account pays 7% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new principal the following year?