Dictionary

amortization

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

Last Updated: November 21st, 2024 at 5:00 AM
Rebecca Reynolds Facebook Rebecca Reynolds Twitter Rebecca Reynolds LinkedIn
Top