principal amount
[ˈprɪnsəpəl əˈmaʊnt]
nounpl: principal amounts
valor principal
1. The original sum of money borrowed, lent, or invested, excluding any interest or additional charges
The principal amount of the loan was $100,000, with interest calculated annually.
O valor principal do empréstimo era de $100.000, com juros calculados anualmente.
2. In finance and investments, the base amount on which interest or returns are calculated
She invested a principal amount of $50,000 in the mutual fund.
Ela investiu um valor principal de $50.000 no fundo mútuo.
3. The face value of a bond or security, separate from accumulated interest
The bond's principal amount will be repaid at maturity.
O valor principal do título será reembolsado no vencimento.
In both Brazilian and American financial contexts, 'principal amount' is a fundamental term used in banking, lending, and investment sectors. It is essential in understanding loan agreements, mortgage documents, and investment portfolios. The concept is legally binding and clearly specified in all financial contracts in both countries.
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