Principal is the original amount borrowed that excludes interest. Understanding loan repayment entails recognizing the difference between principal and interest.
Principal is the original amount of debt on which interest is calculated. For instance, if [tex]$1,000 is lent out and $[/tex]1,080 is received back after a year, the principal is $1,000. It does not include any accrued interest.
The payment plan may specify repayment of only the principal amount without interest. This is critical for understanding loan obligations and total repayment amounts. Financial literacy includes comprehending the distinction between principal and interest.
https://brainly.com/question/34867922