Task: Instance Description Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes the instance 'principal'?

A. the instance of the loan that is owed
B. a charge for an origination
C. a charge for an appraisal
D. a credit whereby the lender reduces closing costs in exchange for a higher interest rate.

Answer: the instance of the loan that is owed