Corey deposited $1,500 in a savings account that earns simple interest
at 5.75%. What is the balance in his account at the beginning of the
third quarter?
a. $1,556.78
b. $1,528.13
c. $1,543.13
d. $1,612.50
The third quarter begins on July 1st, which is halfway through the year. Therefore, Corey's money has been in the account for 6 months.
Simple interest can be calculated using the formula:
interest = principal x rate x time
where time is in years. Since Corey's money has been in the account for half a year, we can express time as 0.5 years.
So, the interest earned on Corey's account is:
interest = $1500 x 0.0575 x 0.5 = $43.13
To find the balance in his account at the beginning of the third quarter, we need to add the interest to the original principal:
balance = $1500 + $43.13 = $1543.13
Therefore, the answer is c. $1,543.13.
To calculate the balance at the beginning of the third quarter, we need to find the simple interest earned on the principal amount.
Step 1: Calculate the simple interest:
Simple Interest = Principal x Rate x Time
Given:
Principal (P) = $1,500
Rate (R) = 5.75% = 0.0575
Time (T) = 1 quarter (since we need to find the beginning of the third quarter)
Simple Interest = $1,500 x 0.0575 x 1
Simple Interest = $86.25
Step 2: Add the simple interest to the principal to get the balance:
Balance = Principal + Simple Interest
Balance = $1,500 + $86.25
Balance = $1,586.25
Therefore, the balance in Corey's account at the beginning of the third quarter is $1,586.25.
The closest answer option is c. $1,543.13.
To calculate the balance in Corey's account at the beginning of the third quarter, we need to determine the interest earned on the deposit and then add it to the original deposit.
The formula to calculate simple interest is:
Interest = Principal × Rate × Time
In this case, the principal is $1,500 and the rate is 5.75%. Since the time given is the beginning of the third quarter, we can assume it has been 6 months, which is half a year.
Using the formula, we can calculate the interest earned:
Interest = 1500 × 5.75% × 0.5
= $43.12
Now, to find the balance in Corey's account at the beginning of the third quarter, we need to add the interest earned to the original deposit:
Balance = Principal + Interest
= $1500 + $43.12
= $1543.12
Therefore, the balance in Corey's account at the beginning of the third quarter is $1,543.12.
So, the correct answer is option c. $1,543.13.