Answer:
The amount of money that will have Allen in his account after 9 months is: $ 965.26
Step-by-step explanation:
First of all, we know that the simple interest is 2.9% per year. So if he uses the account for only 9 months, then the real interest rate will be:
Interest Rate (9months) = Interest Rate (annual) * 9/12
Hence,
IR (9 months) = 2.175 %
The account balance will be:
AB (9 months) = AB (original) + AB (original) * IR (9 months)
AB (9 months) = $944.71 + $944.71* 2.175%
AB (9 months) = $944.71 + $20.55
AB (9 months) = $965.26
So, the correct answer is the first one!
I hope it helped.
