Thursday, July 5, 2018

Amortisation ( Economic Terms)

The  running  down  or  payment  of  a  loan  by  instalments.  An
example is a repayment mortgage on a house, which is amor-
tised  by  making  monthly  payments  that  over  a  pre-agreed
period of time cover the value of the loan plus  interest . With
loans that are not amortised, the borrower pays only interest
during  the  period  of  the  loan  and  then  repays  the  sum  bor-
rowed in full

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