Question

Amy got a $1,000 loan from her bank, and she had to repay $1,550. What are the principal and interest amounts in this transaction?

A. principal is $1,000; interest is $1,550
B. principal is $1,550; interest is $550
C. principal is $1,000; interest is $550

Answer 1

Out of the choices given, the principle is $1,000 and the interest is $550. The correct answer is C.