Which is true about principle?

It is a percentage of the amount you borrow over time
It is a simple way to compare all the various elements of different loans
It is the amount you borrow
It is everything you pay in addition to repaying the amount you borrow

1 answer

The statement that is true about "principle" is:

It is the amount you borrow.

In finance, the principal refers to the original sum of money borrowed in a loan or invested, excluding any interest or additional fees. The other options describe different aspects related to loans but do not accurately define what principal is.