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

I'm not buying this product because I'm going to use it, I'm buying it to support the company due to the principal of this product's existence.

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When looking at her mortgage statement, Susan realized only $300 was going towards principal, and the rest of her payment was going towards interest.

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The car loan terms indicated that of each monthly payment made, 60 percent would go towards the principal or the original amount borrowed and the remainder would go towards the interest on the principal.

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equity-indexed annuity Municipal Bond Insurance Association