John borrows Rs. 2000 from the bank. The Principal of the loan is _____.
A
Rs. 1000
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B
Rs. 2000
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C
Rs. 3000
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D
Rs. 4000
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Solution
The correct option is B Rs. 2000 Principal amount is the original amount of money, the amount before any interest is applied. So, the Principal of the John's loan is Rs. 2000.