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.
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
1 answer
2 answers