Ellen borrow money from the credit union for five years and was charged simple interest on an annual rate of 7%. The total interest that he paid was $2100. How much money did he borrow? If necessary, refer to the list of financial formulas.
To solve this problem, we can use the formula for simple interest:
Interest = Principal x Rate x Time
In this problem, we are given that the interest is $2100, the rate is 7%, and the time is 5 years. Let's assume that the principal borrowed is x dollars.
So, we can rewrite the formula as:
2100 = x * 0.07 * 5
Simplifying the equation:
2100 = 0.35x
Dividing both sides of the equation by 0.35:
x = 2100 / 0.35
x = 6000
Therefore, Ellen borrowed $6000.