BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Maturity Value
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Interest
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Principal
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Rate
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Detailed explanation-1: -What Is Principal? Principal is most commonly used to refer to the original sum of money borrowed in a loan or put into an investment. It can also refer to the face value of a bond, the owner of a private company, or the chief participant in a transaction.
Detailed explanation-2: -The correct option is A principal. The money borrowed or lent out for a certain period is called the principal.
Detailed explanation-3: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-4: -Generally, simple interest paid or received over a certain period is a fixed percentage of the principal amount that was borrowed or lent. Compound interest accrues and is added to the accumulated interest of previous periods, so borrowers must pay interest on interest as well as principal.
Detailed explanation-5: -Money borrowed or lent out for a certain period is called the principal or the sum.