Question

Byron filed for bankruptcy a few years ago, but is still paying higher deposits and interest rates. Byron has calculated that he paid an average of $79.15 per month in additional charges as a result of his bankruptcy. If Byron been able to save this money for the year and then put it into a savings account earning 2% simple interest, how much money could he have in savings after another year?

a.$949.80
b.$968.80
c.$1,139.76
d.$1,918.60

Answer 1

The answer is b.$968.80

Step-by-step explanation:

Answer 2

We will use this formula to compute for the total money in his savings

F= (1+it)
where
P= present amount;
Present amount =monthly interest x 12
Present Amount = $79.15x 12
=$949.8

i= interest rate = 2%
t= time in years = 1 year
F= $949.8[1+[(.02x12)x1]]
F=$968.8
The answer would be letter b.$968.80
Byron's total savings would be $968.80.