Respuesta :
The principal in this scenario is $ 8000.
What is simple & compound interest?
Simple Interest can be defined as the sum paid back for using the borrowed money, over a fixed period of time.
Compound Interest can be defined as when the sum principal amount exceeds the due date for payment along with the rate of interest, for a period of time.
It is Given that:
Priscilla invested 20,000 that means the total amount she invested.
Amount= $ 20,000
Rate of interest=12%
Time= 5 year
Interest= $12,000.
By the formula;
Amount = principal + Interest
Principal = Amount - Interest
Principal= $ 20,000- $12,000
Principal=$ 8000
Hence, the principal in this scenario is $ 8000.
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