What term is used to describe a systematic repayment of a loan through a set number of payments at a specific rate?

Question

Chaya

Mathematics

5 August, 07:34

What term is used to describe a systematic repayment of a loan through a set number of payments at a specific rate?

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Brycen Bowman · Answer 1

Equated monthly installment.

Step-by-step explanation:

A monthly payment is the amount a borrower is required to pay each month until a debt is paid off.

These are often called EMi's.

The full form of EMI is Equated monthly installment.

EMI is a fixed payment amount that is paid/made by a borrower to the lender at a specified time each month until the whole money is paid off with interest.

EMI work on a set interest rate and set payment period. Like if you take a loan for 5 years, you will pay the installments for 60 full months for each month.