Question

1 point 14. Christian Yelich took out a 2-year loan to buy a car at a 6% simple interest rate. If he has to pay $264 in interest, how much principal did she borrow? *

Answer 1

As the simple interest is applied on the principal you have that the $264 is the 6% of the principal:

To find the principal you use a rule of three:

`(100\cdot264)/(6)=4400`Then, the principal is $4400