Question

Zack deposited $1,200 in a savings account that paid 7.75% simple

Answer 1

The correct answer is: Option (C) $1393.21

Explanation:
At the beginning of the Second year, the total balance would be:

$1200 + ($1200 * 7.75 / 100) = $1293

At the beginning of the Third year, the total balance would be:
$1293 + ($1293 * 7.75 / 100) = $1393.21 (Option C)

Answer 2

Answer:

$1386.      

Step-by-step explanation:

We have been given that Zack deposited $1,200 in a savings account that paid 7.75% simple interest. We are asked to find the balance in his account at the beginning of the  third year.

The balance in the account at the beginning of the  third year will be equal to balance in the account at the end of 2nd year.

We will use simple interest formula to solve our given problem.

$A=P(1+rt)$, where,

A = Amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Upon converting our given interest rate in decimal form we will get,

$7.75\%=\frac{7.75}{100}=0.0775$

Upon substituting our given values in simple interest formula we will get,

$A=\ 1200(1+0.0775\cdot 2)$

$A=\ 1200(1+0.155)$

$A=\ 1200(1.155)$    

$A=\ 1386$

Therefore, an amount of $1386 will be in Jack's account at the beginning of third year.