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Question

If the money borrowed is called principal, then Interest=.............- Principal.


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Solution

It is given that ,

If the money borrowed is called principal, then Interest=.............- Principal.

NOTE :

Principal: It is the amount , when a person borrows money from a bank / a money lender

or

It is the amount , when a person deposits the money in savings account.

Interest: It is an amount which is charged for borrowing money from a bank / money lender

or

It is an amount which is given for money deposited in savings account.

Amount : It is the sum of money where principal and interest are taken into account.

i.e Amount=Principal + Interest.

Consider,

Amount=Principal+Interest

on transposing Principal to the LHS

Amount-Principal=Interest

Rewrite as,

Interest=Amount-Principal

Hence, the answer for given blank is Amount.


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