In a mortgage, the amount of money borrowed is called the:

• A. Principal
• B. Equity
• C. Amortization
• D. Interest

Answer: (A)

Verified step by step guidance

1. Understand the key terms in the problem: Principal refers to the original amount of money borrowed in a loan, excluding interest. Equity represents the ownership value in an asset after liabilities are deducted. Amortization is the process of gradually paying off a debt over time through scheduled payments. Interest is the cost of borrowing money, typically expressed as a percentage of the principal.
2. Identify the context of the question: The problem is asking about the specific term used to describe the amount of money borrowed in a mortgage.
3. Recall the definition of Principal: In financial accounting, Principal is the term used to describe the original loan amount borrowed, which does not include any interest or fees.
4. Compare the definitions of the other options (Equity, Amortization, Interest) to ensure they do not match the description of the borrowed amount in a mortgage.
5. Conclude that the correct term for the amount of money borrowed in a mortgage is Principal, based on the definitions and context provided.