Multiple Choice
A smartphone originally costs \$800. It is on sale for \$680. Calculate the percent discount.
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3. Solving Word Problems
Percent Problem Solving
Multiple Choice
A community center paid in simple interest after years on borrowed funds for new equipment. The interest rate was per year. What was the original amount borrowed?
A
B
\$3200
C
\$3632
D
\$3500
Verified step by step guidance1
Identify the formula for simple interest: \(I = P \times r \times t\), where \(I\) is the interest earned, \(P\) is the principal (original amount borrowed), \(r\) is the annual interest rate (in decimal form), and \(t\) is the time in years.
Substitute the known values into the formula: \(I = 432\), \(r = 4.5\% = 0.045\), and \(t = 3\) years, so the equation becomes \(432 = P \times 0.045 \times 3\).
Simplify the right side of the equation by multiplying the interest rate and time: \(0.045 \times 3 = 0.135\), so the equation is now \(432 = P \times 0.135\).
To solve for \(P\), divide both sides of the equation by \$0.135$: \(P = \frac{432}{0.135}\).
This division will give you the original amount borrowed, \(P\). Perform the calculation to find the principal.
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