PLEASE SHOW STEP BY STEP WORK

You need to borrow $1,000 for three years. You come across an advertisement that announces: " $1,000 Instant Credit! 8\% Simple Interest! Three Years to Pay! Low, Low Monthly Payments!" You are not exactly sure what all this means. You approach the advertiser and ask for the loan contract. Unfortunately, the APR on the contract is unreadable because someone has spilled ink over it (just an accident). So, you ask the manager, Mr. Smoothy, for clarification. Mr. Smoothy explains that for the 3-year $1,000 loan, you will owe them only $1,331 at the end of 3 years. You meekly respond that coming up with $1,331 all at once might be a bit of a strain. 'No problem, sir, you make low, low monthly payments of $1,331/36=$36.97 per month, even though it is an extra bookkeeping for us", says Mr. Smoothy. You need to borrow $1,000 for three years. You come across an advertisement that announces: " $1,000 Instant Credit! 8\% Simple Interest! Three Years to Pay! Low, Low Monthly Payments!" You are not exactly sure what all this means. You approach the advertiser and ask for the loan contract. Unfortunately, the APR on the contract is unreadable because someone has spilled ink over it (just an accident). So, you ask the manager, Mr. Smoothy, for clarification. Mr. Smoothy explains that for the 3-year $1,000 loan, you will owe them only $1,331 at the end of 3 years. You meekly respond that coming up with $1,331 all at once might be a bit of a strain. 'No problem, sir, you make low, low monthly payments of $1,331/36=$36.97 per month, even though it is an extra bookkeeping for us", says Mr. Smoothy