QuestionAugust 14, 2025

Which of the following gives the best definition of principal? A. wages or salary before deductions for taxes and other purposes B. the cost of borrowing money or the earnings from lending money C. money earned from investments and employment D. an amount of money borrowed or invested on which interest is paid

Which of the following gives the best definition of principal? A. wages or salary before deductions for taxes and other purposes B. the cost of borrowing money or the earnings from lending money C. money earned from investments and employment D. an amount of money borrowed or invested on which interest is paid
Which of the following gives the best definition of principal?
A. wages or salary before deductions for taxes and other purposes
B. the cost of borrowing money or the earnings from lending money
C. money earned from investments and employment
D. an amount of money borrowed or invested on which interest is paid

Solution
3.8(289 votes)

Answer

D. an amount of money borrowed or invested on which interest is paid Explanation 1. Identify the definition of principal Principal refers to the original sum of money borrowed or invested, excluding any interest or earnings.

Explanation

1. Identify the definition of principal<br /> Principal refers to the original sum of money borrowed or invested, excluding any interest or earnings.
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