Sean’s car loan statement shows he paid 4,866.25 dollars in simple interest at an annual rate of 8.5% over 5 years. Based on the simple interest formula $I = Prt$, which of the following expressions correctly solves for the principal ($P$) he originally borrowed?

Recall the problem-solving strategy for word problems. Arrange the steps in the correct order to find the original amount borrowed (principal) for a car loan when given the simple interest, rate, and time.

As a finance associate at a car dealership, you are verifying the data entries for a customer's simple interest car loan. Based on the statement: 'Sean paid {}4{,}866.25 in simple interest at an annual rate of {}8.5% over ${}5$ years,' match each variable in the formula $I = Prt$ with its correct value or description from the loan summary.

As a loan processor calculating the principal for Sean's car loan using the simple interest formula $I = Prt$, you must first convert the annual interest rate of {}8.5% to the decimal value of ____.

In the simple interest formula $I = Prt$ used to determine Sean's car loan details, the 'principal' ($P$) refers to the total interest of {}4{,}866.25 that he will pay over the life of the loan.

Recalling the Simple Interest Formula for Sean's Car Loan

Explaining the Simple Interest Formula and Principal Calculation Strategy