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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?

Part B -

How much interest would Mia pay if the simple interest rate were 5%?

Respuesta :

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.

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