Question

The original capital that you deposit or invest is called the

A) interest
B) principal
C) tax
D) total revenue

Answer 1

I think that it's either C or D but i'm going to go with D but if that's not the correct awnser is C

Answer 2

The correct answer is option B) principal.

Step-by-step explanation:

At the time of making an investment, we will have an initial amount of capital. This is called principal.

This capital money will be part of our asset, but will not include accrued profits or interests. In other words, it will be what we put into our investment before knowing if we will have profits or losses.

For example, if we start an investment with $ 10,000 and after several years we have $ 18,000, our profit will be $ 8,000 and the principal will remain $ 10,000.