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The amount of money you borrowed is called the what?

The original amount of money borrowed is known as the principal.


What refers to the original amount of money borrowed?

The original amount of money borrowed is known as the principal.


An amount owed upon which interest charged is calculated?

The amount owed upon which interest is charged is known as the principal. This principal amount serves as the base for calculating interest, which can be applied as simple interest or compound interest over time. The total interest paid depends on the principal amount, the interest rate, and the duration for which the money is borrowed or invested. Understanding this concept is crucial for effective financial management and planning.


What amount of money multiplied by the interest rate and the amount of time that the money will be earning interest?

The amount of money that earns interest is known as the principal. When multiplied by the interest rate and the time period for which the money is invested or borrowed, it determines the total interest earned or paid. This relationship is often expressed in the formula for simple interest: Interest = Principal × Rate × Time. The resulting figure represents the interest accrued over that specific duration.


What is the total amount I will need to pay each month for my mortgage?

The total amount you will need to pay each month for your mortgage includes the principal amount borrowed, interest, property taxes, and insurance. This total amount is known as your monthly mortgage payment.


What do you call it when you borrowed money?

When you borrow money, it is typically referred to as taking out a loan. The amount borrowed is known as the principal, and it often comes with an agreement to repay the money with interest over a specified period. This process can occur through various means, such as personal loans, mortgages, or credit lines.


Specified amounts of money borrowers must pay lenders for the use of money or borrowed funds is are known as?

interest


What is a certificate that promises to repay borrowed money in the future?

A certificate that promises to repay borrowed money in the future is commonly known as a bond. When an entity, such as a government or corporation, issues a bond, it borrows money from investors and agrees to pay back the principal amount at a specified maturity date, along with periodic interest payments. Bonds serve as a way for organizations to raise capital while providing investors with a fixed income investment option.


What is the practice of lending money for interest known as?

The practice of lending money for interest is known as usury. This involves charging a fee for the use of borrowed money, typically expressed as a percentage over a period of time.


What is the the price paid to borrow money called?

The price paid to borrow money is called interest. It is usually expressed as a percentage of the amount borrowed, known as the principal, and can be calculated on a periodic basis, such as annually or monthly. Interest compensates the lender for the risk of lending and the opportunity cost of not using the money for other purposes.


A price paid for borrowing money?

The price paid for borrowing money is known as interest. It is typically expressed as a percentage of the principal amount borrowed and compensates the lender for the risk of lending and the opportunity cost of not using that money elsewhere. Interest can be calculated using simple or compound methods, depending on the terms of the loan.


When a borrower receives the face amount of a discounted note less interest the amount is known as?

When a borrower receives the face amount of a discounted note less interest the amount, this is known as a discount loan. A discount loan is not actually discounted in the traditional sense.