Intro to Business

study guides for every class

that actually explain what's on your next test

Principal

from class:

Intro to Business

Definition

In the context of raising long-term financing, principal refers to the original amount of money borrowed or invested, before any interest or profits are added. It is the base figure on which interest payments and returns on investment are calculated.

congrats on reading the definition of principal. now let's actually learn it.

ok, let's learn stuff
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
Glossary
Guides