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25 March, 18:05

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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  1. 25 March, 21:36
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    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.
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