Answer:
p = ----------- = $4,400
Step-by-step explanation:
The formula for simple interest is i = prt, where r is the interest rate expressed as a decimal fraction.
We want to calculate the principal. Solving the above formula for p, we get:
i
p = -------
rt
So if r = 0.06, t = 1 yr and i = $264, the principal in this particular case is
$264
p = ----------- = $4,400
0.06(1)
