Examlex
In the new classical model, ________.
Principal
The original sum of money borrowed in a loan, or the initial amount invested, excluding any interest or dividends.
Payment
The act of transferring money, or its equivalent, from a buyer to a seller as compensation for goods or services.
Effective Interest Method
A method of calculating the amortized cost of a bond or loan based on periodic cash flows and interest expense adjustments.
Interest Expense
The cost incurred by an entity for borrowed funds.
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