Simplify. 17y(2) 19y 172y 34y 19 + y
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The total amount of the car loan, plus taxes and fees is called: A- Principal.
A principal can be defined as an amount of money that represents the total amount of loan on an asset, plus taxes and other fees applicable.
In Financial accounting, principal is commonly associated with compound interest or simple interest.
Mathematically, simple interest is given by the formula:
<u>Where:</u>
- S.I is the simple interest.
- P is the principal amount.
- R is the interest rate.
- T is the time measured in years.
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