Question

Ricky spends $103.19 in additional interest and charges on monthly payments as the result of a prior bankruptcy. If

Ricky had been able to save this money for one year and then put it into a savings account earning 3.1% simple interest,
how much money could he have in savings after two more years?
a. $1,238.28
b. $1,276.67
C. $1,315.06
d. $2,476.56

Answer 1

c

Explanation:

Answer 2

9514 1404 393

Answer:

C. $1,315.06

Explanation:

Saving 103.19 per month for 12 months would give Ricky the amount of ...

12 × $103.19 = $1238.28

The amount of interest earned on this amount in one year is ...

I = Prt = $1238.28·0.031·1 = $38.39 . . . . rounded to nearest cent

Then the balance after 2 years will be ...

$1238.28 +2 × $38.39 = $1315.06