ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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principal
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savings
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compound interests
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saving
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Detailed explanation-1: -Principal is also the original amount of investment made in an asset, separate from any earnings or interest accrued. For example, assume you deposit $5, 000 in an interest-bearing savings account. At the end of 10 years, your account balance will have grown to $6, 500.
Detailed explanation-2: -The original amount of money you deposit or invest, excluding any interest or dividends, is called the principal. 2.
Detailed explanation-3: -The original principal balance on a loan is the amount of the loan before any payments are made. This means that a loan in the amount of $130, 000 will have an original principal balance of $130, 000.
Detailed explanation-4: -The principal is the total amount borrowed from a lender or the initial amount invested. In other words, it is the original sum of money that has been borrowed or invested.
Detailed explanation-5: -Your principal is money in your possession that can earn interest or dividends.