Final answer:
Mia will pay a total of $16 in simple interest for her $320 loan at a 5% rate for one year. Thus, the total repayment amount will be $336.
Step-by-step explanation:
The subject of the question is Mathematics, specifically dealing with the concept of simple interest. Mia needs to calculate the simple interest on her loan of $320 with an interest rate of 5% for one year. The formula for simple interest is:
Interest = Principal × Rate × Time
Using the given information, we can compute the interest as follows:
Interest = $320 × 0.05 × 1 = $16
Therefore, the total amount of interest Mia will owe is $16. To find the total amount she will pay back, we add the original principal to the interest:
Total repayment amount = Principal + Interest
Total repayment amount = $320 + $16 = $336