Answer: 1902.36
Step-by-step explanation:
When interest is compounded monthly , the formula to find the accumulated amount is
[tex]A=P(1+\dfrac{r}{12})^{12t}[/tex] , where P = principal value , r = rate of interest , t = time.
As per given,
r= 24% = 0.24
P= $1500
t= 1 year
Put all value in formula , we get
[tex]A= 1500(1+\dfrac{0.24}{12})^{12\times 1}\\\\=1500(1+0.02)^{12}\\\\=1500(1.02)^{12}\\\\=1500(1.26824179456)\approx1902.36[/tex]
Hence, he need to pay $1902.36.