ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal
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Interest
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Portfolio
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Stock
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Detailed explanation-1: -The home loan principal amount is the amount of money initially borrowed from the lender, and as the loan is repaid, it can also refer to the amount of money still owed. If you avail a home loan of Rs. 50 lakhs, the principal is Rs. 50 lakhs.
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: -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-4: -Use the formula I = PRT to calculate the principal amount.