Mia agrees to borrow a 3-year loan with 4% simple interest to buy a motorcyclePart A -If Mia will pay a total of $444 in interest, how much money did she initially borrow?Part B - How much interest would Mia pay if the simple interest rate were 5%?
Accepted Solution
A:
Answer:Part A : She borrowed $ 3700.Part B : She would pay $ 555 interest.Step-by-step explanation:Since, simple interest is,[tex]S.I.=\frac{P\times r\times t}{100}[/tex]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, [tex]444=\frac{P\times 3\times 4}{100}[/tex][tex]\implies P=\frac{444\times 100}{3\times 4}[/tex][tex]=\frac{44400}{12}[/tex][tex]=3700[/tex]Hence, She borrowed $ 3700.Part B :Here, r = 5 %, t = 3 years, P = $ 3,700, [tex]\implies S.I.=\frac{3700\times 5\times 3}{100}[/tex][tex]=\frac{55500}{100}[/tex][tex]=555[/tex]Hence, She would pay $ 555 interest.