Definition: The money originally invested or loaned, on which basis interest and returns are calculated.
Alright class, settle down, let’s take a peek, At this word "principal," something we should seek! The dictionary tells us, clear and bright, It's the original amount, shining light. Think of it like this, a starting plea, Like money you lend, or investment free! It’s the base upon which things grow tall, Interest and returns, answering the call. So if you loan ten dollars, crisp and new, That ten is your principal , it's perfectly true! It’s the foundation, the core, the start, Of all the earnings, a valuable part. Does that make sense? Any questions to share? Let's review this concept with utmost care!