Maths Dictionary · JSS 3, SS 3
Principal
Simple meaning
The amount of money first borrowed or saved, before interest.
Example
Save ₦20,000 at 5%: the principal is ₦20,000.
See it
From the Simple Interest lesson. Try moving things around.
Years →PrincipalInterest: the same ₦1,000 every year
Principal P₦20,000
Rate R5%
Time T3 yrs
I = PRT ÷ 100 → 20,000 × 5 × 3 ÷ 100 = ₦3,000
A = P + I = ₦20,000 + ₦3,000 = ₦23,000