Question

Elsa took out a 2-year loan to buy a car at a 6% simple interest rate.
If she has to pay $264 in interest, how much principal did she borrow?

Answer 1

Step-by-step explanation:

I = p * r * t

264 = p * .06 * 2

264 = .12p

Divide both sides by .12

p = $2200...

hope it's helps..

Answer 2

Answer:

Required principal is $2200 .

Step-by-step explanation:

Given, Elsa took out a 2-year loan to buy a car at a 6% simple interest rate and simple interest is $264.

So, simple interest = $264,time = 2 years and rate of interest = 6%

We know, simple interest $= \frac{prt}{100}$

where,p is principal,r is rate of interest,t is time.

Here,

$t = 2 \: years \\ simple \: interest \: = 264 \\ rate \: of \: interest \: = 6\%$

According to question

$\frac{p \times 6 \times 2}{100} = 264 \\ \frac{12p}{100} = 264 \\12p = 264 \times 100 \\ p = 2200$

Therefore, required principal is $2200

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