Final answer:
To calculate the total amount Evan owed after 3 years, the simple interest formula was used with a principal of $244,000, a rate of 3.55%, and a time of 3 years. The interest amounted to $25,962, leading to a total owed amount of $269,962, which does not match any of the provided answer choices, suggesting a possible error.
Step-by-step explanation:
To calculate how much Evan owed after 3 years with a simple interest rate of 3.55%, we will use the formula for calculating simple interest, which is Interest = Principal × Rate × Time. In this case, the principal amount (P) is $244,000, the rate (r) is 3.55%, and the time (t) is 3 years.
First, convert the annual interest rate from a percentage to a decimal by dividing by 100:
3.55% ÷ 100 = 0.0355
Next, plug the values into the formula:
Interest = $244,000 × 0.0355 × 3
Interest = $25,962
Now, add the interest to the principal to find the total amount owed after 3 years:
Total Amount Owed = Principal + Interest
Total Amount Owed = $244,000 + $25,962
Total Amount Owed = $269,962
It seems there may be a discrepancy as none of the provided answer choices match the calculated total amount owed. It might be due to a typographical error in the question or the answer options given. However, based on the information provided, this would be the correct approach to calculating the total owed amount.