To find the simple interest on a loan, we use the formula:

$\text{Simple Interest} = \frac{P \times R \times T}{100}$

where:

• $P$ is the principal amount (the initial amount of money),
• $R$ is the rate of interest per year,
• $T$ is the time the money is borrowed for, in years.

Given:

• $P = 34700$ dollars,
• $R = 14.25\%$ per annum,
• $T = \frac{191}{365}$ years.

Let's calculate the simple interest.

$\text{Simple Interest} = \frac{34700 \times 14.25 \times \frac{191}{365}}{100}$

Now, let's compute this.The simple interest on the loan is approximately $2,587.53.

Do you have any questions or would you like more details? Here are some related questions:

1. How would the interest change if the loan period were extended to 365 days?
2. What would the simple interest be if the interest rate was 12% instead of 14.25%?
3. How is the simple interest formula different from the compound interest formula?
4. What is the total amount to be paid back at the end of the loan period?
5. How would the interest calculation differ if the loan were calculated using a 360-day year?

Tip: Always ensure you know whether interest is calculated on a 360-day or 365-day basis, as this can slightly affect the result.