Answer:
The principal is the starting amount of money either being saved or loaned.
Step-by-step explanation:
The principal is the starting amount of money for interest formulas. Most common formulas are:
- [tex]A = Pe^{rt}[/tex]
- [tex]A= P ( 1+ rt)[/tex]
- [tex]A = P(1+\frac{r}{n})^{rt}[/tex]
In each of these equation, P stands for principal. It is the starting amount which is then multiplied by whatever interest is being applied to find the total amount after time t.
