Davis Law Firm is borrowing $15,000 at 10% interest for one year.The $15,000 is the:
A)principal.
B)proceeds.
C)amount of interest.
D)net amount.

Question

Quizplus · Accepted Answer

The principal is the amount of money being borrowed, in this case $15,000. The proceeds are the actual amount of money received after any fees or other expenses are deducted, but this is not relevant to the question. The amount of interest is the additional money paid on top of the principal, and the net amount would be the total amount received after the loan is repaid, again not relevant to the question.

Davis Law Firm Is Borrowing $15,000 at 10% Interest for One