Loan Amortization
When a lender like a bank extends a loan to a borrower, provisions will
be made for the borrower to repay the loan amount some time in the
future or in parts periodically. At the same time, the lender will
expect to receive interests from the borrower as a reward of undertaking
the risk to lend out the money. When the loan amount is repaid by parts
over a certain amount of time, the loan is called an amortized loan.A borrower will typically be interested in knowing how much he will have
to pay periodically if he takes up a loan of a certain amount over a
certain period of time.Other information like how much total interest
he will have to incur,the total principal loan amount outstanding at a
specific point in time and whether he will be able to afford the loan if
he shorten the total loan period will also be of interest to the
borrower. All these information can be easily illustrated using a Loan
Amortization Schedule.
Loan Amortization
Loan Amortization
Loan Amortization
Loan Amortization
Loan Amortization
Loan Amortization
Loan Amortization
Loan Amortization
No comments:
Post a Comment