ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An outstanding balance is the amount you owe on any debt that charges interest, like a credit card. Most often, it refers to the amount you owe from purchases and other transactions made with your credit card. It’s also called your current balance.

Detailed explanation-2: -Understanding Principal In the context of borrowing, principal is the initial size of a loan-it can also be the amount still owed on a loan. If you take out a $50, 000 mortgage, for example, the principal is $50, 000. If you pay off $30, 000, the principal balance now consists of the remaining $20, 000.

Detailed explanation-3: -Principal is the amount of money a company borrows when it takes a loan. This amount is recorded on a promissory note as proof of the debt owed. In all but the rarest of situations, the borrower must pay interest, which is the lender’s fee for making money available.

Detailed explanation-4: -What is an outstanding principal balance? This is the amount of a loan’s principal amount (i.e. the dollar amount initially loaned) that is still due, and does not take into account the interest or any fees that are owed on the loan.