Milo is purchasing a new refrigerator for $3600
$
⁢
3600
using an in-store offer. The store is offering a 90
90
days same-as-cash loan. This means that at the end of the 90
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
90
days. If the annual interest rate is 23.99%
23.99
%
, how much would Milo owe on the 91st
91
st
day if he made no payments during the first 90
90
days? Round your answer to the nearest cent, if necessary.

Milo's refrigerator purchase of $3600 comes with a 90-day same-as-cash offer, meaning if he doesn't pay off the refrigerator by the 90th day, he will owe interest calculated on the original amount. Let's break down how much he would owe on the 91st day if no payments are made in the first 90 days.

### Step 1: Understand the formula for simple interest
The simple interest formula is:

\[
I = P \times r \times t
\]

Where:
- $ I $ is the interest amount,
- $ P $ is the principal (the original amount),
- $ r $ is the interest rate (as a decimal) per period (annual interest rate divided by the number of periods in a year),
- $ t $ is the time in years.

### Step 2: Set up the variables
- $ P = 3600 $ (the original amount),
- $ r = 23.99\% = 0.2399 $ (annual interest rate in decimal form),
- $ t = \frac{90}{365} $ (the time period is 90 days, so convert to a fraction of a year).

### Step 3: Calculate the interest
Now, plug the values into the formula:

\[
I = 3600 \times 0.2399 \times \frac{90}{365}
\]

I'll calculate this.

\[
I = 3600 \times 0.2399 \times 0.24657534 \approx 213.43
\]

### Step 4: Calculate the total amount owed
On the 91st day, Milo will owe the original principal plus the interest:

\[
\text{Total} = 3600 + 213.43 = 3813.43
\]

So, if Milo makes no payments during the first 90 days, he will owe **$3813.43** on the 91st day.

Would you like any further details or clarification?

---

Here are 5 related questions for deeper understanding:

1. How would the amount owed change if the interest rate was lower, say 15% annually?
2. How is simple interest different from compound interest?
3. What if Milo made a partial payment before the 90 days? How would that affect the interest calculation?
4. How could Milo calculate his monthly payments if he wanted to pay the refrigerator off in equal installments over the 90 days?
5. What are the advantages of same-as-cash offers compared to regular loans?

**Tip:** Always make sure to understand whether the interest is calculated as simple or compound, as this significantly affects the total amount to be paid.

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 91st day if he made no payments during the first 90 days? Round your answer to the nearest cent, if necessary.

Learn how to calculate simple interest for a 90-day same-as-cash loan on a $3600 refrigerator purchase at an annual interest rate of 23.99%. This problem covers key financial concepts, such as simple interest, time in fractions of a year, and calculating total owed. Suitable for students in Grades 9-10.

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