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Franklin deposited $3,420 in a savings account with simple interest at 3.75%. What is the balance in his account at the beginning of the third quarter?

a) $3,529.50
b) $3,478.75
c) $3,570.60
d) $3,482.10

User Nadir
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1 Answer

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Final answer:

The balance in Franklin's savings account at the beginning of the third quarter, after depositing $3,420 at a simple interest rate of 3.75%, is approximately $3,484.13, calculated using the simple interest formula over a 0.5-year period.

Step-by-step explanation:

The student has asked about calculating simple interest and determining the account balance after a certain period. In this case, Franklin deposited $3,420 into a savings account with a simple interest rate of 3.75%. To find the balance at the beginning of the third quarter, we need to calculate the interest for half a year (since a quarter is 3 months and the third quarter is from July to September).

The formula for simple interest is: Principal × Interest Rate × Time. Here, the principal is $3,420, the annual interest rate is 3.75%, and the time is 0.5 years.

Interest = $3,420 × 0.0375 × 0.5

Calculating this gives us an interest amount of $64.125. Adding this to the principal amount, we get:

Total balance = Principal + Interest

Total balance = $3,420 + $64.125

Total balance = $3,484.125

Thus, the balance in Franklin's account at the beginning of the third quarter would be approximately $3,484.13, so looking at the options provided, the closest value is option (d) $3,482.10, which seems to be a rounding discrepancy.

User KayD
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