principal sum
- noun
- /ˈprɪnsəpəl sʌm/
- Specialized
:
capital
- Investors must distinguish between the principal sum and the interest earned over time.
Examples
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The principal sum will be repaid at the end of the loan term, with interest paid annually.
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The principal sum must be repaid within five years.
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She received the principal sum back after the bond matured, along with the accrued interest.
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Investing the principal sum wisely can yield high returns.
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The bank requires that the principal sum be paid back in full before any interest is calculated.
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When applying for a loan, it's important to understand how the principal sum will affect your monthly payments.
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Investors often focus on the principal sum when estimating the returns on their investments.
Synonyms
141
1.0
An amount of money considered as a whole
37
4.1
The original amount of money you borrow or invest
1
7.6
The main amount of money in an investment, not the interest
How Much
Surface Forms
Morphology
The meaning is directly and compositionally derived from 'principal' (the initial amount on which interest is computed) and 'sum' (a monetary total). Although it is a formal financial/legal collocation, the parts combine transparently and learners who know both words will readily infer the MWE's meaning; similar constructions exist in many languages.
Etymology
Principal sum comes from the words principal meaning the main or first part and sum meaning the total amount. Think of a pile of money you first lend: that 'original amount' is the principal sum, and the 'interest' is calculated from it, so the phrase means the main money you invested or lent.