The Installment Loan Formula
This lesson explains how to use the installment loan formula to solve problems. Site: http://mathispower4u.com.
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4. Effective annual interest rate on installment loans An installment (amortized) loan is a loan that is periodically paid off in equal installments.
Consumer or business loan (such as for a vehicle, vacation, or equipment) in which the principal and interest are repaid in equal installments at fixed intervals (usually every month). These loans are commonly secured by the item purchased or by the personal property (excluding real estate) of the borrower.Also called installment credit.
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