Byron filed for bankruptcy a few years ago, but is still paying higher deposits and interest rates. Byron has calculated that he paid an average of $79.15 per month in additional charges as a result of his bankruptcy. If Byron been able to save this money for the year and then put it into a savings account earning 2% simple interest, how much money could he have in savings after another year?
Saving $79.15 each month for 12 months gives $79.15 × 12 = $949.80. One year of 2% simple interest adds $949.80 × 0.02 = $19.00 (rounded to the nearest cent). The total is $949.80 + $19.00 = $968.80, so the correct choice is $968.80.
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