An annuity loan (installment credit) is repayed with constant monthly installments, which cover proportionate interest and part of the repayment. In order for the installment to stay constant over time, interest payments as a proportion of the loan decline while the amortization increases, until the loan is fully repaid. More detailed information on the calculation can be found in the following Wikipedia article: https://en.wikipedia.org/wiki/Annuity

Was this article helpful?


0 out of 0 found this helpful
Have more questions? Submit a request

Comments

0 comments

Article is closed for comments.

Frequently asked question

Haven’t found the answer?

Our team is only one e-mail away and will be happy to help

Delia Aellen
Delia Aellen
Jannis Schriever
Jannis Schriever
Titus Spirig
Titus Spirig
Ruben Rodrigues
Ruben Rodrigues