The amount of money borrowed in a transaction is called:
A) interest.
B) principal.
C) internal rate of return.
D) present discounted value.

Question

Quizplus · Accepted Answer

Principal refers to the original amount of money borrowed or invested in a transaction. Interest refers to the cost of borrowing that principal, while internal rate of return and present discounted value are methods used to calculate the return on investments.

The Amount of Money Borrowed in a Transaction Is Called