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What will you call the amount of money borrowed or invested?A.InterestB.Time periodC.LoanD.Principal

Aniket Singh , 9 Months ago
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Askiitians Tutor Team

The correct answer is D. Principal.

Explanation: The amount of money borrowed or invested is called the "principal." This is the initial sum of money that is either borrowed from a lender or invested in an account or investment vehicle.

Let's break down the other options:

A. Interest: Interest is the extra money paid or earned on the principal amount. It is the cost of borrowing money or the return on an investment.
B. Time period: This refers to the length of time for which the money is borrowed or invested.
C. Loan: A loan refers to the actual borrowing agreement where a lender provides the principal amount to a borrower, who is then expected to repay it with interest.
So, the principal is the initial amount, and it is separate from interest, time period, or the loan agreement itself.

Last Activity: 9 Months ago
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