BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is an arrangement in which you buy now and pay later.
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It is the annual rate of interest a bank charges for a loan.
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It is the original amount of money the bank loans the borrower.
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Detailed explanation-1: -Principal is the money that you originally agreed to pay back. Interest is the cost of borrowing the principal. Generally, any payment made on an auto loan will be applied first to any fees that are due (for example, late fees).
Detailed explanation-2: -The amount owed is called the principal and the price of borrowing money is called interest.
Detailed explanation-3: -The principal is the amount you borrowed and have to pay back, and interest is what the. For most borrowers, the total monthly payment you send to your mortgage company includes other things, such as homeowners insurance and taxes that may be held in an escrow account.
Detailed explanation-4: -Principal loan amount, or principal, is simply the amount of money you initially borrow from a lender. Principal does not include any fees or interest the lender charges, and it does not include any upfront payments you might make, such as a down payment on a house or car.