Question

is the amount of money borrowed or invested.

Answer 1

Principal is the amount of money borrowed or invested.

What is principal?

• In the field of mathematics, principal can be defined as the amount of money which is either borrowed or which can be invested.
• When we first take out a loan, the original amount that is borrowed is referred as the principal.
• The price of the borrowing money is called interest whereas the amount owed is the principal.

Answer 2

Principal

The amount of money borrowed or invested is called as Principal. When you first take out a loan, the principal is the original amount you borrowed. As you pay toward that debt, the principal becomes the outstanding balance on the loan, not including interest and any fees accrued.