select the correct answer. pete wants a loan of $1,500. which of these terms describes the money he wants to…
select the correct answer. pete wants a loan of $1,500. which of these terms describes the money he wants to borrow? a. principal b. collateral c. interest
Answer
Brief Explanations:
In finance, the principal is the initial amount of money borrowed or invested. Collateral is an asset pledged for a loan, and interest is the cost of borrowing the principal. Here, the $1,500 Pete wants to borrow is the principal.
Answer:
A. principal