What is the principal amount if I take out a $1000 loan for college at a 7% interest rate?
When you take out a loan, the principal is the original sum of money that you borrow, which you are obligated to pay back, not including any interest. In your case, if you take out a $1000 loan for college, the principal amount is simply $1000. To further clarify, let’s break down the components of … Read more