67.2k views
2 votes
Is the amount that savings or investments grows called a principal

User Nasim
by
6.2k points

1 Answer

5 votes
Principal is also the original amount of investment made in an asset, separate from any earnings or interest accrued. For example, assume you deposit $5,000 in an interest-bearing savings account. At the end of 10 years, your account balance will have grown to $6,500.
User Keff
by
6.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.