Morris Law Firm is borrowing $10,000 at 6% interest for one year. The $10,000 is the
A. proceeds.
B. principal.
C. amount of interest.
D. net amount.

Question

Morris Law Firm is borrowing $10,000 at 6% interest for one year. The $10,000 is the
  A. proceeds. 	
  B. principal. 	
  C. amount of interest. 	
  D. net amount.

domebotnos · Answer

What do you think the answer is?

domebotnos · Answer

alyssa, how much is 6% intrest of $10,000

bibby · Answer

they're not asking that. they're asking what the 10k is

anonymous · Answer

well, im not sure. I know what the net income is income left over after taxes have been deducted..

domebotnos · Answer

i know but i want her to know how 6% of $10,000

bibby · Answer

it's not relevant though

domebotnos · Answer

i would probably say  b is the answer because they want a solid 10k ...

anonymous · Answer

well 6% of 10,000 is 600

bibby · Answer

principal is the amount before interest
the percent (as a decimal) * the principal is the interest amount
I think the net amount is principal + interest

bibby · Answer

http://www.businessdictionary.com/definition/loan-proceeds.html apparently proceeds are the net amount

anonymous · Answer

okay thank you!! (: