In general, the principal amount is best expressed as the difference between the
ID: 1155793 • Letter: I
Question
In general, the principal amount is best expressed as
the difference between the amount of money lent and the amount of money later repaid
the amount of money invested at the prime interest rate
the present worth of money
the annual equivalent value of money
the future worth of money
the difference between the amount of money lent and the amount of money later repaid
the amount of money invested at the prime interest rate
the present worth of money
the annual equivalent value of money
the future worth of money
Explanation / Answer
The principal amount refers to the amount still owed on a loan.
Therefore,option a-the difference between the amount of money lent and amount of money repaid.