Final answer:
The amount you would have to pay back in two months when borrowing $600 at 38% monthly interest is $1143. Therefore correct option is B
Step-by-step explanation:
To find out how much you would have to pay back in two months when borrowing $600 at 38% monthly interest, we can calculate the total payment using compound interest formula:
A = P(1 + r)^n
Where:
A = total payment
P = principal amount (initial loan)
r = interest rate
n = number of periods
Plugging in the values, we have:
A = 600(1 + 0.38)^2
A = 600(1.38)^2
A = 600(1.9044)
A = 1142.65
Rounding the answer to the nearest dollar, the amount you would have to pay back in two months is $1143.