Amy got a $1,000 loan from her bank, and she had to repay $1,550. What are the principal and interest amounts in this transaction?
A.
principal is $1,000; interest is $1,550
B.
principal is $1,550; interest is $550
C.
principal is $1,000; interest is $550

Question

Amy got a $1,000 loan from her bank, and she had to repay $1,550. What are the principal and interest amounts in this transaction?
A. 
principal is $1,000; interest is $1,550
B. 
principal is $1,550; interest is $550
C. 
principal is $1,000; interest is $550

Sherixn · Answer

Hint: principal amount is the amount of money you originally were going to pay back

xxDeppressionxx · Answer

I think this post goes in the Finance post section, if you are confused on why the reason is simple it is because of the words “interest” and “Principal”. Also when posting these types of questions remember to (use specification) on the words so other users know what your talking about.

xxDeppressionxx · Answer

And Welcome to QuestionCove!

xxDeppressionxx · Answer

@vocaloid could you put this in the right subject?