Principal
Definition
The meaning of principal depends on the context in which it’s used.
Regarding a Person
A person who authorizes another to act in their place, called an Agent.
ex. In his Financial Power of Attorney document, Alex authorized Blake to be his Agent. This allowed her to handle his finances.
Regarding a Financial Amount
The underlying amount of a debt or an investment. This excludes interest, profits, or additional earnings.
ex. The investment principal was $10,000.00, but it has grown to $11,000.00 because of returns.
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