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Business Definition for: amortization schedule
Dictionary of Business Terms
amortization schedule

table that shows the periodic payment, interest and principal requirements, and unpaid loan balance for each period of the life of a loan.

Dictionary of Banking Terms
amortization schedule

table commonly used in mortgages and installment loans, showing the number of payments due, the amount due in each installment, the declining principal balance, and the number of years needed to fully extinguish the debt.

AMORTIZATION OF ONE-YEAR $1,000 LOAN AT 10%, SIMPLE INTEREST

Monthly Payment (P&I): 87.92
To Principal		 To Interest Balance
79.59 8.33 920.41
80.25 7.67 840.16
80.92 7.00 759.24
81.59 6.33 677.65
82.27 5.65 595.38
82.96 4.96 512.42
83.65 4.27 428.77
84.35 3.57 344.42
85.05 2.87 259.37
85.76 2.16 173.61
86.47 l.45 87.14
87.19 .73 -.05
Dictionary of Insurance Terms
amortization schedule

method of paying a sum due whose value has been discounted, according to a predetermined schedule. Each periodic payment includes part of the principal and interest due thereon.

Dictionary of Real Estate Terms
amortization schedule

a table that shows the periodic payment, interest and principal requirements, and unpaid loan balance for each period of the life of a loan.

Example: An amortization schedule for a $1,000 principal, 5-year self-amortizing loan at 10% interest with annual payments is shown in Table 2.

TABLE 2
AMORTIZATION SCHEDULE
End of
year		 Payment
required		 Interest at 10%
of unpaid balance		 Principal
retirement		 Unpaid balance
at end of year
1 $263.80 $100.00 $163.80 $836.20
2 263.80 83.62 180.18 656.02
3 263.80 65.60 198.20 457.82
4 263.80 45.78 218.02 239.80
5 263.78 23.98 239.80 0
Total retired $1,000.00
Referring Terms:
consumer credit
amortized value
level payment amortization
installment to amortize one dollar
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
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