ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Interest
|
|
|
Principal
|
|
|
Savings
|
|
|
Capital gain
|
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.
Detailed explanation-2: -The sum of money you deposit into a savings account or borrow from a bank is called the principal. The fee to borrow money is called interest. When you borrow money you pay back the principal and interest to your lender.
Detailed explanation-3: -the money you initially deposited, called the principal.
Detailed explanation-4: -The principal amount means the amount you owe at any point in time. It is precisely your loan amount when you have just taken out the loan.
Detailed explanation-5: -The amount you initially deposit to open your account is the principal.