Question

which statement best describes the term principal

Answer 1

Answer:

The principal is the starting amount of money either being saved or loaned.

Step-by-step explanation:

The principal is the starting amount of money for interest formulas. Most common formulas are:

• $A = Pe^{rt}$
• $A= P ( 1+ rt)$
• $A = P(1+\frac{r}{n})^{rt}$

In each of these equation, P stands for principal. It is the starting amount which is then multiplied by whatever interest is being applied to find the total amount after time t.