Question

Amy got a $1,000 loan from her bank, and she had to repay $1,550. What are the principal and interest amounts in this transaction?

Answer 1

The total is $550 from the transaction

Answer 2

The principle amount is simply what she borrowed initially so it would be $1,000.

The interest amount was how much was added from the initial amount:

$1,550 - $1,000 = $550