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In teaching a child to ride a bike,a parent will leave the training wheels on.Once bicycling is mastered,the parent will remove the wheels but still hold on to the seat of the bike to ensure the child's stability.Finally,the adult will let go once the child can ride on his own.This is an example of
Investment
is the allocation of resources, usually money, with the expectation of generating an income or profit.
Principle
The original sum of money borrowed in a loan, or the amount of the investment before interest.
Interest
The cost of borrowing money or the return on investment, calculated as a percentage of the principal sum.
Loan
A sum of money borrowed that is expected to be paid back with interest.
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