ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest Rate
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Original
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Principal
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Total
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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.
Detailed explanation-2: -Money borrowed or lent out for a certain period is called the principal or the sum.
Detailed explanation-3: -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-4: -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-5: -The principal is the amount of funding borrowed for your home loan, and the interest is the money paid monthly for use of the loan.