In general the principal amount is best expressed as the dif

In general, the principal amount is best expressed as

the difference between the amount of money lent and the amount of money later repaid

the amount of money invested at the prime interest rate

the present worth of money

the annual equivalent value of money

the future worth of money

Solution

The principal amount refers to the amount still owed on a loan.

Therefore,option a-the difference between the amount of money lent and amount of money repaid.