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 qtr =
the end of 2nd qtr = 6 mo. = 0.5 yrs.
To find the balance in Franklin's account at the beginning of the third quarter, we need to calculate the interest earned and add it to the initial deposit.
First, let's calculate the interest earned. Simple interest is calculated using the formula:
Interest = Principal x Rate x Time
In this case, the principal (initial deposit) is $1,400 and the rate is 6.75% (which can be written as 0.0675 as a decimal).
To find the time, we need to determine the number of quarters that have passed. Since we want to find the beginning of the third quarter, two quarters have already passed. Therefore, the time is 2 quarters.
Now we can calculate the interest earned:
Interest = $1,400 x 0.0675 x 2 = $189
Next, we add the interest earned to the initial deposit:
Balance = $1,400 + $189 = $1,589
So, the balance in Franklin's account at the beginning of the third quarter is $1,589.