Part A
If Mia pays simple interest, it means that she will pay the same dollar amount of interest each year.
Since she paid a total interest of $444 over 3 years, her annual interest = 444/3 = 148
Let "x" represent the intital amount she borrowed
So, we frame the equation as :
x*0.04 = 148
x = 148/0.04
x = 3,700
Amount she initially borrowed = $3,700
Part B:
If the interest was 5%,
Her annual interest will be = 3,700*0.05 = 185
So, her total interest = 185*3 = $555
Interest that Mia would pay at 5% simple interest = $555
