principal (deposit or loan); capital (business)
Meanings
2 senses · 6 examplesnoun
principal; the original sum of money deposited or loaned
formalA financial term referring to the original amount of money, as opposed to the interest it earns. Often used in banking, loans, and investments.
The interest on this loan is 5% per year, but you need to repay the principal first.
He deposited a principal sum in the bank and withdrew it with interest ten years later.
Show 1 more exampleShow fewer examples
When the time deposit matures, you can choose to withdraw only the interest and leave the principal to continue earning.
noun
capital; the funds invested in a business
formalRefers to the money used to start or operate a business, distinct from profits. Common in finance and economics contexts.
The start-up capital for this company came from several angel investors.
Starting this business requires a large investment of capital.
Show 1 more exampleShow fewer examples
He invested all his capital into the new project, which is very risky.