you charged $500 to your credit card to buy a new tv and paid it off after 6 months. with interest, you paid…

you charged $500 to your credit card to buy a new tv and paid it off after 6 months. with interest, you paid back a total of $600. which of the following is the principal in this situation?\na $500.\nb 6 months.\nc $100.\nd $600.

you charged $500 to your credit card to buy a new tv and paid it off after 6 months. with interest, you paid back a total of $600. which of the following is the principal in this situation?\na $500.\nb 6 months.\nc $100.\nd $600.

Answer

Explanation:

Step1: Recall principal definition

In finance, the principal is the original amount of money borrowed or invested.

Step2: Identify original amount

The original amount charged to the credit - card for the TV is $500. This is the principal amount. The $600 is the total amount repaid (principal + interest), the $100 is the interest ($600 - $500), and 6 months is the time period.

Answer:

A. $500