Multiple Choice QuestionWhen Sal and Jen bought their first home they obtained a mortgage. The amount of money they borrowed for their mortgage is called ______.Multiple choice question.a line of creditcapitala reservethe principal
Question
Multiple Choice QuestionWhen Sal and Jen bought their first home they obtained a mortgage. The amount of money they borrowed for their mortgage is called ______.Multiple choice question.a line of creditcapitala reservethe principal
Solution
The answer is "the principal".
Step by Step Explanation:
-
A mortgage is a loan that is used to buy a property or land.
-
The amount of money that is borrowed initially from the lender is called the principal.
-
Over time, the borrower repays the principal along with interest.
-
Therefore, in the context of a mortgage, the amount of money Sal and Jen borrowed is referred to as the principal.
So, the correct answer to the multiple-choice question is "the principal".
Similar Questions
Multiple Choice QuestionWhen individuals and businesses borrow money, the amount of money borrowed is called ____.Multiple choice question.the principalinterestthe collateralcapital
Multiple Choice QuestionAn agreement by which a financial institution promises to lend a business a predetermined sum on demand is called ______.Multiple choice question.a line of credita trade creditcollateralequity financing
Multiple Choice QuestionIn a secured loan, if the borrower does not repay the loan, the bank can claim the _______ which was used to secure the loan in the first place.Multiple choice question.interestcommercial paperline of creditcollateral
Multiple Choice Question_____ is a percentage of the principal that a bank charges for use of its money.Multiple choice question.CollateralCapitalInterestEquity
Multiple Choice QuestionPeople who borrow money value it for Blank______.Multiple choice question.the interest they have to paywhat it can purchaseits own sakeits function as an economic resource
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.