Question

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

Answer 1

The total amount Lusac have in his savings after 3 more years with 1.8% saving interest is $1055.10.

What is simple interest?

Simple interest is the amount charged on the principal amount with a fixed rate of interest for a time period. Simple interest calculated only on the principal amount.

The formula for the simple interest can be given as,

$I=\dfrac{Prt}{100}$

Here, (I) is the interest amount earned on the principal amount of (P) with the rate of (r) in the time period of (t).

Lucas spends $83.42 in additional interest and charges on monthly payments as the result of a prior bankruptcy. The amount save in a year (12 months) is,

$P=83.42\times12\\P=1001.04$

The interest earned on this principal amount with earning 1.8% simple interest, after 3 years is,

$I=\dfrac{1001.04\times1.83}{100}\\I=54.06$

The total total amount in his bank account after 3 years is,

$A=P+I\\A=1001.04+54.06\\A=1055.10$

Hence, the total amount Lusac have in his savings after 3 more years with 1.8% saving interest is $1055.10.

Learn more about the simple interest here;

brainly.com/question/2294792