Posted by Mike on .
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.