Final answer:
The principal amount of the 120-day, 12% note is $20,000, which is the amount stated in the question.
Step-by-step explanation:
The question asks about the principal amount of a 120-day, 12% note for $20,000. The principal amount of a note represents the amount borrowed or the base amount on which interest is calculated. In this case, the principal is directly given as $20,000. No calculation is needed to find the principal amount, as it is stated outright in the question.The 12% interest rate and the 120-day duration are additional details about the note, but they do not affect the principal amount. They would be relevant if the question asked for the calculation of interest or future value of the note.Conclusion: Therefore, the main answer to the student's question is that the principal amount of the note is $20,000.