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Which statement best describes the term principal

User Xvan
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Answer:

The principal is the starting amount of money either being saved or loaned.

Explanation:

The principal is the starting amount of money for interest formulas. Most common formulas are:


  • A = Pe^(rt)

  • A= P ( 1+ rt)

  • A = P(1+(r)/(n))^(rt)

In each of these equation, P stands for principal. It is the starting amount which is then multiplied by whatever interest is being applied to find the total amount after time t.

User Totero
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