principal payment
[ˈprɪnsəpəl ˈpeɪmənt]
nounpl: principal payments
pagamento de principal
1. A payment that reduces the outstanding balance of a loan or debt, as opposed to interest payments
Each month, $200 of your mortgage payment goes toward principal payment and $800 goes toward interest.
A cada mês, $200 do seu pagamento de hipoteca vai para o pagamento de principal e $800 vai para juros.
2. In finance, the amount of money that was originally borrowed or invested, excluding any interest or earnings
The principal payment schedule shows how much of each installment will reduce the original loan amount.
O cronograma de pagamento de principal mostra quanto de cada parcela reduzirá o valor do empréstimo original.
3. A scheduled payment of the capital amount on a bond or security at maturity
The bond's principal payment of $1,000 will be returned to the investor at maturity.
O pagamento de principal da obrigação de $1.000 será devolvido ao investidor no vencimento.
In both the United States and Brazil, understanding the distinction between principal and interest payments is crucial for financial literacy, particularly for mortgages and consumer loans. In Brazil, where inflation has historically affected lending practices, the concept of principal payment is especially important in adjustable-rate loans and indexed mortgages. Americans often discuss 'paying down the principal' as a strategy to reduce long-term interest costs.
Related Idioms & Phrases
paying down the principal
accelerated principal payment
principal and interest payment
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