Principal

The initial amount of money borrowed or the outstanding balance on a loan.

📖 Explanation:

Principal is the amount of money that is initially borrowed in a loan or the remaining balance on a loan. It does not include interest or other fees.

📀 Examples:

  • When you take out a car loan, the principal is the amount you borrowed to buy the car.
  • Over time, as you make payments, the principal balance decreases.

Additional notes