After taking out a one year loan with an annual interest rate of 10 percent, Tommy pays $3,300 back to the bank. The principal of the loan must be ___________ and the interest payment must be ___________.
A) $3,000; $300
B) $3,300; $300
C) $300; $3,300
D) $300; $3,000

Question

Quizplus · Accepted Answer

The total repayment of $3,300 includes both the principal and the interest. With a 10% interest rate, the interest on the principal is $300, making the principal $3,000.

After Taking Out a One Year Loan with an Annual