Amortisation Formula (Leaving Cert Mathematics): Flashcards

Spreading loan repayment over a specified period of time

Loan amortisation and asset amortisation

Original amount borrowed in a loan

Cost of borrowing money as a percentage

Applied periodically (monthly or annually)

Total number of payment periods

Regular payment that stays the same throughout loan term

Both principal repayment and interest

Detailed table showing payment breakdown into principal & interest

Outstanding loan amount after each payment

Larger portion of payment goes towards principal rather than interest

Fixed repayment amount needed to fully repay a loan