Many loans are repaid by using a series of payments over a period of time. These payments usually include an interest amount computed on the unpaid balance of the loan plus a portion of the unpaid balance of the loan. This payment of a portion of the unpaid balance of the loan is called a payment of principal.
Organization |
Iowa State University Extension |
Publisher |
Iowa State University |
Published |
May, 2013 |
Material Type |
Written Material |