Question

Which statement best defines the term principa?

A.

It is an arrangement in which you buy now and pay later.

B. It is the annual rate of interest a bank charges for a loan.

C. It is the original amount of money the bank loans the borrower.

Answer 1

Answer: for plato users

C is the correct answer

Explanation:

Answer 2

c. It is the original amount of money the bank loans the borrower

Explanation:

Simple interest is a type of interest that is applied to the amount borrowed or invested for the entire duration of the loan. Principal amount is a term for initial amount of money borrowed from the bank by the borrower