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If you take out a $1,000 loan for college at 7% interest, what is the principal?

2 Answers

4 votes
The principal is the loan amount, $1,000
User Chamal
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5 votes

Answer:

$1000.

Explanation:

We have been given that you you take out a $1,000 loan for college at 7% interest. We are supposed to determine the principal amount.

Since we know that principal amount is the amount of borrowed money excluding the interest.

As you have borrowed an amount of $1000 as loan for college, therefore, principal amount is $1000.

User Riba
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8.3k points