Answer:
Principal borrowed is $2,200
Step-by-step explanation:
To know the amount of principal Elsa borrowed to buy a car, we will simply use the simple interest formula;
Simple Interest = PRT / 100
Where p = principal
R is the rate
T is the time (in years)
In this case, principal is what we are looking for, time= 2 years and simple interest = $264
So we will now plug in our variables
Simple Interest = PRT / 100
$264 = P × 6 × 2 / 100
$264 = 12P / 100
Cross multiply
12P = $264 × 100
12P = 26400
Divide both-side of the equation by 12
12P/12 =26400/12
(On the left-hand side of the equation 12 will cancel out 12 leaving us with just P and on the right-hand side of the equation 126400 will be divided by 12)
P = $2,200
Therefore, the principal she borrowed is $2,200
