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?

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asked Jun 23, 2018 65.7k views

2 Answers

Lucyjosef · Answer 1 · 2018-06-28T17:41:38+0000

The Simple Interest formula is I = Prt
I = ?
P = $264
r = 6% or 0.06
t = 2 years

I = 264(0.06)(2)
I = $31.68

Elsa borrowed $31.68 principal.