Dictionary of Business Terms: principal amount
principal amount
face value of an obligation, such as a bond or a loan, that must be repaid at maturity, as separate from the interest. Principal payments are not tax deductible. Principal receipts in repayment of a loan are not taxable income, but principal receipts from a sale may be taxable if the sale was reported as an installment sale.
Dictionary of Finance and Investment Terms: principal amount
principal amount
face value of an obligation (such as a bond or a loan) that must be repaid at maturity, as separate from the interest.
