Question

Mia agrees to borrow a 3-year loan with 4% simple interest to buy a motorcycle. Part A If Mia will pay a total of $444 in interest, how much money did she initially borrow?

Answer 1

$3700

Explanation:

To find how much Mia borrowed, we simply need to use the Simple Interest formula:

I = (P * R * T) / 100

Where I = interest

P = principal or amount borrowed

R = rate of interest

T = time taken (in years)

Mia agrees to borrow a 3-year loan with 4% simple interest and she will pay a total of $444 in interest. Therefore:

444 = (P * 4 * 3) / 100

444 = 12P / 100

444 * 100 = 12P

=> P = (444 * 100) / 12

P = $3700

Therefore, she initially borrowed $3700 .