Explanation:
P = I / rt is the formula we're going to use.
P is the principle (which is what we're solving for)
I = the interest accrued over the specified amount of time (2 years)
r = the interest rate (6%)
t = the time specified (2 years)
Change the percent to a decimal. Place the decimal two places to the left to make 0.06.
P = 264 / 0.06(2)
P = 264 ÷ 0.12 = 2,200
Principal borrowed would be $2,200