principal

Definitions (6)

1. The amount borrowed, or the part of the amount borrowed which remains unpaid (excluding interest). here also called principal amount.
2. The part of a monthly payment that reduces the outstanding balance of a mortgage.
3. The original investment.
4. The entity on whose behalf an agent acts.
5. The role a broker/dealer plays when buying or selling securities for its own account.
6. An important company executive.

Use principal in a sentence

The homeowner's mortgage consisted of a principal that reduced the outstanding balance of the loan and monthly payments.

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