In the basic formula for calculating interest on a promissory note,principal refers to:
A)the original amount - the discount.
B)the amount of interest to be paid.
C)the original amount loaned or borrowed.
D)the maturity value.

Question

Quizplus · Accepted Answer

Principal refers to the original amount that was loaned or borrowed, before any interest or fees are added or subtracted.

In the Basic Formula for Calculating Interest on a Promissory