To calculate the balance in Zack's account at the beginning of the third year, we need to calculate the interest earned during the first two years and add it to the initial deposit.
First, we need to calculate the interest earned during the first year:
Interest = Principal x Rate
Interest = $1,200 x 7.75% = $93
After the first year, the balance in Zack's account will be:
$1,200 + $93 = $1,293
Next, we need to calculate the interest earned during the second year:
Interest = $1,293 x 7.75% = $100.28
At the beginning of the third year, the balance in Zack's account will be:
$1,293 + $100.28 = $1,393.28
Therefore, the balance in Zack's account at the beginning of the third year will be $1,393.28.
Zack deposited $1,200 in a savings account that paid 7.75%
interest compounded yearly. What was the balance in his account at
the beginning of the
third year?
1 answer
1 answer