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Morris Law Firm is borrowing $10,000 at 6% interest for one year. The $10,000 is the A. proceeds. B. principal. C. amount of interest. D. net amount.

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rebeccakanter

Answer: B
$10,000 is the principal amount.

Answer:

B

Step-by-step explanation:

If Morrs Law firm is borrowing he then pays 6% on top of the $10000 they borrowed for the year. The $10000 is the initial amount and interest is paid on it which makes it the principal amount borrowed as the amount of interst can be determined as:

\(10000\cdot0.06=600\)

and the net amount is 10000+600=10600

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