Question

Select the correct answer.

What is the original amount borrowed by a person from a bank or other lending institutions known as?

Answer 1

The answer is principle.

Step-by-step explanation:

The reason why I got that right is because I took the test on edmentum and got it right so there you go, and I hope this helps :)

Answer 2

Principal

Step-by-step explanation:

A loan can be defined as the lending of money, property, etc by one party to another party. A loan is more often than not given out by financial institutions.

The money is loaned between parties, the original amount borrowed by the receiving party is called the PRINCIPAL.

This principal begins to reduce as soon as the money starts to be paid back.

Every principal(loan) has an interest. The interest is always at a particular rate, spread over a period of time, etc.

Cheers.