Which statement is true about principal? A. it is everything you pay in addition to repaying the amount you borrow B. It is a simple way to compare all the various elements of different loans C. It is the amount you borrow D. It is a percentage of the amount you borrow over time

Answer 1

The correct statement about principal is: C. It is the amount you borrow.

The principal is the original sum of money borrowed in a loan or the amount still owed on a loan, separate from interest or other fees.