A print shop borrows $\$ 3700$ from a credit union for 231 days. The credit union charges simple interest at an annual rate of $8.25 \%$ for this loan. Assume each day is $\frac{1}{365}$ of a year. Answer each part below.
Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.
(a) Find the interest that will be owed after 231 days.
(b) Assuming the print shop doesn't make any payments, find the amount owed after 231 days.
$\$ \square$
Answer
Calculating the above expression, we find that the total amount owed is approximately $3893.19.
Step 1 ：Given that the principal amount (P) is $3700, the annual interest rate (R) is 8.25% or 0.0825 in decimal form, and the time (T) is 231 days or approximately 0.6329 years (since each day is 1/365 of a year).
Step 2 ：We can use the formula for simple interest, I = PRT, to find the interest that will be owed after 231 days.
Step 3 ：Substituting the given values into the formula, we get I = 3700 * 0.0825 * 0.6329.
Step 4 ：Calculating the above expression, we find that the interest (I) is approximately $193.19.
Step 5 ：To find the total amount owed after 231 days, we add the interest to the principal amount. So, the total amount owed is $3700 + $193.19.
Step 6 ：Calculating the above expression, we find that the total amount owed is approximately $3893.19.
