The larger the amount of principal, the larger the dollar amount of interest.-True-False
True
True.
The principal amount is the amount of money borrowed or invested. The interest is the fee charged for borrowing money or the income generated from the investment.
The interest earned or paid is directly proportional to the principal amount. As the principal amount increases, the interest generated or charged also increases. Therefore, the larger the amount of principal, the larger the dollar amount of interest.
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