Amortization schedule
Amortization schedule is a table that breaks down the periodic fixed payment of an installment loan into its principal and interest components.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Amortization schedule. A table that breaks down the periodic fixed payment of an installment loan into its principal and interest components.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Amortization schedule. A table showing precisely how a loan will be repaid. It gives the required payment on each payment date and a breakdown of the payment, showing how much is interest and how much is repayment of principal.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
