Accounting Dictionary
Principal
Principal is a word that means amount borrowed.
If a person borrowed $1,000 for a year at 10% interest, at the end of a year he would have to repay $1,100. $1,000 of this amount is the repayment of the original $1,000 he borrowed. The $1,000 is the principal. The remaining $100 is the interest.
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/principal/
Related Terms:
Interest
Bond
Yield
Borrow
Line of Credit
Bond Premium
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