BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal (P)
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Interest (I)
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Simple Interest
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Maturity Value or Future Value
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Detailed explanation-1: -The amount of money borrowed or invested is called as Principal. When you first take out a loan, the principal is the original amount you borrowed. As you pay toward that debt, the principal becomes the outstanding balance on the loan, not including interest and any fees accrued.
Detailed explanation-2: -The correct option is A principal. The money borrowed or lent out for a certain period is called the principal. It is denoted by P.
Detailed explanation-3: -Generally, simple interest paid or received over a certain period is a fixed percentage of the principal amount that was borrowed or lent. Compound interest accrues and is added to the accumulated interest of previous periods, so borrowers must pay interest on interest as well as principal.
Detailed explanation-4: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.