uestion 9 of 15, Step 1 of 1 Milo is purchasing a new refrigerator for \( \$ 3600 \) using an in-store offer. The store is offering a 90 days same-as-cash loan. This means that at the end of the 90 days, if Milo has paid off the cost of the refrigerator, he owes no added interest charge, but if he does not pay off the entire cost of the refrigerator, he owes simple interest on the original purchase amount, calculated over the entire 90 days. If the annual interest rate is \( 23.99 \% \), how much would Milo owe on the 91 sit day if he made no payments during the first 90 days? Round your answer to the nearest cent, if necessary.

To determine how much Milo would owe on the 91st day if he made no payments during the first 90 days, we need to calculate the simple interest accrued on the original purchase amount of \( \$3,600 \) over the 90-day period. ### Step-by-Step Calculation: 1. **Identify the Given Values:** - **Principal (\( P \))**: \( \$3,600 \) - **Annual Interest Rate (\( r \))**: \( 23.99\% \) or \( 0.2399 \) (as a decimal) - **Time (\( t \))**: \( 90 \) days 2. **Convert the Time to Years:** Since the interest rate is annual, we need to express the time period in years. \[ t = \frac{90 \text{ days}}{365 \text{ days/year}} \approx 0.2466 \text{ years} \] 3. **Calculate the Simple Interest (\( I \)):** \[ I = P \times r \times t \] \[ I = 3600 \times 0.2399 \times 0.2466 \approx 3600 \times 0.05916 \approx 212.96 \] 4. **Determine the Total Amount Owed:** \[ \text{Total Owed} = P + I \] \[ \text{Total Owed} = 3600 + 212.96 = 3812.96 \] ### Final Answer: Milo would owe **\$3,812.96** on the 91st day if he made no payments during the first 90 days.