A company borrows $10,000 from the bank at 10% interest for sixty days. $10,0000 is the ________ of the note.

Question

Quizplus · Accepted Answer

The principal is the original amount borrowed, which in this case is $10,000. The maturity value refers to the total amount due at the end of the loan term (which would include the principal and interest), the interest amount is the cost of borrowing money, and the stated value is not a financial term.

A Company Borrows $10,000 from the Bank at 10% Interest