Principal amount

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Principal amount

The face amount of debt; the amount borrowed or lent. Often called principal.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Principal Amount

The amount of money one borrows. Unless the loan is interest-free, one always pays more than the principal amount to the lender. The interest is calculated over the principal amount still outstanding. As a result, many loans are amortized so that a greater amount of principal amount remains outstanding for a longer period of time so the lender can make the most profit from the loan. It is also simply called the principal.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The second lease yield shall be paid to the investors on 8 November 2016 at the end of the maturity, together with principal sums. The fact that the lease certificates are offered at [10.23 per cent annual gross return] lower cost than the similar deals realized recently has strengthened the investors' confidence in our bank, which is a highly-pleasing development."
In shutting down Pine Commodities and sister firm Pinecom Services in the High Court, Registrar Derrett said the evidence "strongly suggests that the investors will never recover the principal sums invested, let alone realise any return".
Over the past 40 years, the government has been loaned $115bn and has repaid $132bn in principal sums and interest.
The Deputy Finance Minister said the principal sums of the external debt are repaid now.
Our overriding objective is to protect the principal sums invested even if this means we may not be achieving the maximum return offered by some investment institutions."

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