7
QuizMultiple Choice

Credit and Interest

Question 7 • FL-2106010-M/J Civics B

The amount owed when credit is used is equal to the __________ plus __________.

Answer
A
balance . . . tax
B
interest . . . tax
C
principal . . . balance
D
principal . . . interest

Explanation

The principal is the original amount borrowed or charged. Interest is the cost of borrowing that is added to it, so the total amount owed is the principal plus interest. This matches “principal . . . interest.”

AI-written and checked against the verified answer.

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