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Business Definition for: annual debt service
annual debt service
required annual principal and interest payments for a loan. In corporate finance, the cash required in a year for payments of interest and current maturities of principal on outstanding debt.
annual debt service
required annual principal and interest payments for a loan.
Example: A loan of $100,000 calls for 300 equal monthly payments to fully amortize the principal. Interest is 8% annually. Monthly payments are $771.82. Annual debt service is the sum of 12 monthly payments, or $9,261.84.
Copyright © 2007, 2000, 1997, 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.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
