Question

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

In this problem we can use the loan equation that is:

$P=V+i$

So if he pays 264 in interes, this correspount to the 6% and we have to calculate the 100% with a rule of 3 so:

$\begin{gathered} 264\to6 \\ x\to100 \end{gathered}$

and the equation will be:

$\begin{gathered} x=\frac{264\cdot100}{6} \\ x=4400 \end{gathered}$

So the prinsiple is 4400