ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Down Payment
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Mortgage
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Principal
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Interest
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Detailed explanation-1: -The amount of money borrowed from the bank is called the loan, and the extra amount of money paid back to the bank other than the loan is called the interest.
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 principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
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.