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?
In order to solve this problem you would put it into the formula for interest rate which is P(1+r/n). P is the amount of money in this case it is $900. r is the percentage as a decimal so in this case it would be 0.065. n is number of times that cost is paid in this case 4 since it is paid quarterly. So the formula is 900(1+0.065/4)=$914.625
