lucas spends $83.42 in additional interest an...
lucas spends $83.42 in additional interest and charges on monthly payments as the result of a prior bankruptcy. if lucas been able to save this money for the year and then put it into a savings account earning 1.8% simple interest, how much money could he have in savings after 3 more years? a. $1,649.72 b. $1,055.10 c. $1,019.06 d. $1,001.04 please select the best answer from the choices provided
Answer
# Explanation:
## Step1: Calculate annual savings
Monthly savings is $83.42. Annual savings $P$ (principal) is $83.42\times12 = 999.04$.
## Step2: Use simple - interest formula
The simple - interest formula is $I=Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the time in years. Here, $P = 999.04$, $r=0.018$, and $t = 3$.
$I=999.04\times0.018\times3$
$I=999.04\times0.054$
$I = 53.94816$.
## Step3: Calculate total savings
The total amount $A$ in savings is the sum of the principal and the interest, $A=P + I$.
$A=999.04+53.94816=1052.98816\approx1055.10$.
# Answer:
B. $1,055.10$