Elsa took out a 2-year loan to buy a car at 6% simple interest rate if she had to pay 264 in interest then the principal did she borrow is 22 and this can be determine by using the principal formula.
Given :
- Elsa took out a 2-year loan to buy a car.
- Interest Rate = 6%
- Interest Amount = 264
Principal formula can be use to determine the principal amount that elsa pays, that is:
I = PRT --- (1)
where, I is the interest amount,
P is the principal amount,
R is the interest rate (in years),
T is the amount of time in years.
Now, put the values of I, R and T in equation (1).
[tex]\rm 264 = P\times 6 \times 2[/tex]
P = 22
So, the principal amount Elsa borrow is 22.
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https://brainly.com/question/12811834
