ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the “original” amount of a loan less fees and interest
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the “original” borrowed amount plus interest
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the “original” borrowed with amount with fees included
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the “original” amount of money borrowed
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Detailed explanation-1: -The amount of money borrowed or invested is called as Principal. When you first take out a loan, the principal is the original amount you borrowed. As you pay toward that debt, the principal becomes the outstanding balance on the loan, not including interest and any fees accrued.
Detailed explanation-2: -Principal is the money that you originally agreed to pay back. Interest is the cost of borrowing the principal.
Detailed explanation-3: -The correct option is A principal. The money borrowed or lent out for a certain period is called the principal.
Detailed explanation-4: -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-5: -The principal is the money borrowed or initial amount of money deposited in a bank. The principal is denoted by a capital letter “P.” The extra amount you earn after depositing or the extra amount you pay when settling a loan.