Hello there! The formula for finding simple interest is prt. This means you multiply the principal (the initial amount in the bank) by the rate (the simple interest rate), and multiply the amount of time (could be months or years). In this case, we can eliminate A and D, because we're looking for the balance, not the amount of interest earned. The simple interest rate is 6.75% annually, and 1,400 * 6.75% (0.0675) is 94.5. That would mean $94.50 is earned in interest annually. This means that we can cross out C, because that exceeds the amount that would be earned in a year or months for that matter. The beginning of third quarter would happen after 1/2 a year, or 6 months. 1/2 = 0.5. 94.5 * 0.5 is 47.25 and 1,400 + 47.25 = 1,447.25. You would have $1,447.25 at the beginning of the third quarter. The answer is B.
Note: When it comes to months, you would convert it into a decimal, depending on the amount of months. For example, 6 months would be 0.5 and 9 months would be 0.75. You would use those decimals as the time to multiply the amount of interest earned in that time frame. I am aware that you said no formulas, but I broke it down for you to understand it, because you'll need it in the future for problems like these and for more complex ones like it.
