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Answer:

principle or amount  your account starts with. this could be a starting investment, or the starting about amount of a loan. interest, in its most simple form, is calculated as a percent of the principal. for example, if you borrowed $100 from a friend and agree to repay it with 5% interest, then amount of interest you would pay would just pay would just be 5% of 100: $100(0.05)= $5. the total amount  you would you would repay would repay would be $105, the original principal plus the interest.

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