If you borrow money to pay for an item, your _______________ in that item at a given time is the part of the principal you have paid.

Question

Quizplus · Accepted Answer

Equity refers to the portion of an asset that you own outright, which is calculated by subtracting the amount of borrowed funds (the principal) from the current market value of the asset. Amortization refers to the process of paying off a loan over time through regular payments of both principal and interest, while investment and interest do not accurately describe the concept of ownership in an item purchased with borrowed funds.

If You Borrow Money to Pay for an Item, Your