Ginger Yiu has a principal of $900 in her savings account with a 6% APR. The simple interest is calculated quarterly. What is the amount in the account at the end of the third quarter?

Question

agent0smith · Answer

I'm guessing it's just simple interest and not any compound interest, but i hate when it's not obvious like this.

6% is 0.06, which you have to divide by 4 since it's quarterly, 

so at the end of the first quarter, she gets 0.06/4 * $900 in interest.

anonymous · Answer

Thank you! :) @agent0smith

agent0smith · Answer

haha you're welcome :) well that's only the first quarter. But it seems like you just have to add that onto the 900 three times, or

3*(0.06/4 * $900) + 900 = end of third quarter.

anonymous · Answer

Okay. Got it. Thanks:) @agent0smith