Miguel takes out a one-year loan of $5,000 with a 10 percent annual interest rate. What is the principal?
A) $5,000
B) $5,500
C) $500
D) $1,000

Name: Miguel takes out a one-year loan of $5,000 with a 10 percent annual interest rate. What is the principal? A) $5,000 B) $5,500 C) $500 D) $1,000
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The principal of a loan is the initial amount borrowed. In this case, Miguel takes out a loan of $5,000, so the principal is also $5,000.

Miguel Takes Out a One-Year Loan of $5,000 with a 10