Multiple Choice
In a city, the water company increased the monthly water bill by . The initial monthly cost is . What is the cost after the increase?
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3. Solving Word Problems
Percent Problem Solving
Multiple Choice
Sofia plans to buy a car. Her loan statement indicates she will pay in interest for a -year loan at simple interest per year. How much did Sofia borrow for the car?
A
\$5,000
B
\$4,500
C
\$15,000
D
\$6,350
Verified step by step guidance1
Identify the formula for simple interest, which is given by:
\[\text{Interest} = P \times r \times t\]
where \(P\) is the principal (amount borrowed), \(r\) is the annual interest rate (in decimal form), and \(t\) is the time in years.
From the problem, note the values:
Interest = \$1,350\(,
Time \)t = 3$ years,
Interest rate \(r = 9\% = 0.09\) (convert percent to decimal by dividing by 100).
Substitute the known values into the simple interest formula:
\[1,350 = P \times 0.09 \times 3\]
Simplify the right side by multiplying the interest rate and time:
\[1,350 = P \times 0.27\]
To find the principal \(P\), divide both sides of the equation by 0.27:
\[P = \frac{1,350}{0.27}\]
This will give the amount Sofia borrowed for the car.
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