Ponce Leon has a principal of $900 in his savings account on October 1. The money earns an APR of 6.5% calculated quarterly as simple interest. What is the amount in the account on July 1 of the following year?

Question

mertsj · Answer

I=Prt
I=900(.065)(.25)=$14.625
900 + 14.625=$914.625 is what he has at the end of December

mertsj · Answer

Calculate the interest on that amount for Jan, Feb, and March:
I=914.625(.065)(.25)=$14.863
Add the interest to the principal:
914.625 +15.863=$929.488
Now you do it one more time for April, May, and June.