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o-na [289]
3 years ago
5

If Sam invested $3000and he earned $300 over 6 months, the principal is

Business
1 answer:
Charra [1.4K]3 years ago
7 0
THE PRINCIPAL IS THE  $3000 WHICH SAM INVESTED.
In accounting, the principal refers to the amount of money which the investor used to do a particular business over a specific period of time. The profit made during this period is called return on investment [ROI]. In the question given above, $300 is the return on investment. 
In the case of borrowing, the principal refers to the total amount of money that is borrowed for a period of time. The money will have to be repaid with an interest on it.
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