15
QuizMultiple Choice

Relating Income and Careers — Test

Question 15 • Personal Finance

The original loan amount is called the ______.

Answer
A
balance
B
principal
C
interest
D
payment

Explanation

The principal is the original amount of money borrowed in a loan. The balance is what remains to be repaid, while interest is the cost of borrowing and a payment is money paid toward the loan. Therefore, the correct choice is principal.

AI-written and checked against the verified answer.

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