Question

Pamela is getting ready to purchase her first condominium. To get ready for the mortgage process, she gathers her Excel spreadsheets that contain all of her financial information. Pamela needs to borrow $30,000 as a down payment for her condominium. This amount will be the ____.

Answer 1

Answer:

Principal.

Explanation:

Principal is the amount that is borrowed when a person collects a loan. It is the amount that is paid back with interest during the life of the loan. Interest is the cost of the loan collected.

For example if one collects a loan of $100 with interest payment of 10%. They will pay back the principal ($100) and the interest ($10) that is $110.

The $30,000 that Pamela borrows is the principal amount. That she will payback with interest over the life of the loan.