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andrew-mc [135]
3 years ago
9

Lucas spends $83.42 in additional interest and charges on monthly payments as the result of a prior bankruptcy. If Lucas been ab

le 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?
Business
2 answers:
worty [1.4K]3 years ago
6 0

Answer:

$1,056.07

Explanation:

Given:

Amount spent each month = $83.42

Interest rate, r = 1.8% = 0.018

Time, n = 3 years

Now,

The total amount collected at the end of the year = $83.42 × 12 = $1001.04

The value of amount deposited in the bank after 3 years will be

Future value = Present value × ( 1 + r )ⁿ

on substituting the respective values, we have

Future value = $1001.04 × ( 1 + 0.018 )³

or

Future value = $1,056.07

Hence,

The money he could have at the end of 3 more years will be $1,056.07

Step2247 [10]3 years ago
6 0

Answer:

B.) 1,055.10

Explanation:  

Took the test and was right

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