The amount of loan a person or firm borrows from a lender is the:
A) creditor.
B) indenture.
C) debenture.
D) principal.
E) amortization.

Question

Quizplus · Accepted Answer

The amount of loan a person or firm borrows from a lender is called the principal. The term "principal" refers to the original amount borrowed, which must be repaid along with interest. Therefore, option D is the best choice. Option A is incorrect as a creditor is a person or entity that lends money or extends credit to someone else. Option B refers to a legal document outlining the terms of a bond or loan agreement. Option C is a type of debt security that is not secured by collateral. Option E refers to the process of paying off debt over time in installments.

The Amount of Loan a Person or Firm Borrows from a Lender