Question

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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? Enter your answer in the box.

$

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Part B
How much interest would Mia pay if the simple interest rate were 5%? Enter your answer in the box.

$

Answer 1

Part A: She borrowed: 3700

Part B: She would pay 555 in interest.

Explanation:

Since, simple interest is,

Where, P is the principal amount,

r is the annual rate of interest,

t is time ( in years ),

Part A : Here, S.I. = $ 444,

t = 3 years,

r = 4 %,

Thus,

Hence, She borrowed $ 3700.

Part B :

Here, r = 5 %, t = 3 years, P = $ 3,700,

Hence, She would pay $ 555 interest.