ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Principal: This is the original amount of money that is being borrowed. Loan Term: The amount of time that the borrower has to repay the loan.
Detailed explanation-2: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-3: -Principal: The amount of debt, exclusive of interest, remaining on a loan. Principal and Interest to Income Ratio: The ratio, expressed as a percentage, which results when a borrower’s proposed Principal and Interest payment expenses is divided by the gross monthly household income.
Detailed explanation-4: -“Loan terms” refers to the terms and conditions involved when borrowing money. This can include the loan’s repayment period, the interest rate and fees associated with the loan, penalty fees borrowers might be charged, and any other special conditions that may apply.
Detailed explanation-5: -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.