A student borrowed some money from his father at 2% simple interest to buy a car. If he paid his father $360 in interest after 3 years, how much did he borrow?

Okay Lucy this is the equation for simple interest:

P * R = I

where:

P = principle or amount borrowed

R = rate of interest per term (which in this case appears to be annual)

I = Interest per term (which in this case appears to be annual)

Since it is simple interest the principle is constant.

So $360/3 years = $120 per year which is 2% of the principle per year

therefore from the equation we rearrange to get:

P = I/R

so P = $120/0.02 = $6000 (remember the decimal equivalent of the rate of interest)

each year he paid 2% of $6000 or a total amount of 6% of $6000 for a total of 0.06($6000) = $360

Now you want to know how much he borrowed which would be the principle of $6000.

Hope this helps!

Art