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Sagot :
Hence, the correct answer is (c)$1,055.10
What is simple interest?
Simple interest is interest calculated on the principal portion of a loan or the original contribution to a savings account. Simple interest does not compound, meaning that an account holder will only gain interest on the principal, and a borrower will never have to pay interest on interest already accrued.
How to solve?
We have,
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 the 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 $1,055.17
to learn more about Interest: https://brainly.com/question/2294792
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