The amount that a bank loans to a customer (that doesnt include interest) is called:

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The amount that a bank loans to a customer (that doesn’t include interest) is called:

A	Principal
B	Interest
C	Loan

Explanation:

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: -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-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: -Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. So Op.

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