The money borrowed or lent out for a certain period is called,

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Interest

Principal

Time period

None of these

answer is B.

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Detailed Solution

Concept: In Simple interest formula there is a term used which is principal amount. Principal amount is known for the amount of the money which we borrow for some time period or time duration.
The term "principal" most frequently refers to the initial sum of money borrowed in a loan or invested.
As we know that,

Here,

is the principal amount.
Hence, the correct answer is option (2) .

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