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To calculate the total amount owed, we need to find the penalty for not paying the $100.00 per month and also include the interest for the year.
The penalty for not paying the $100.00 per month is 2% of the original amount of $1,000.00, which is $20.00.
The interest for the year is calculated as follows:
Principal amount = $1,000.00
Interest rate = 7.65%
Interest = Principal amount * Interest rate = $1,000.00 * 0.0765 = $76.50
Total amount owed = Principal amount + Penalty + Interest
Total amount owed = $1,000.00 + $20.00 + $76.50 = $1,096.50
Therefore, the correct response is $1,096.50.