Question

When referring to lending from a bank, what is the definition of Principal Amount?

Answer 1

Answer:

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. ... The amount of interest you pay on a loan is determined by the principal..

Step-by-step explanation:

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