Introduction to Economic Times University

Dear Friends,

Economic Times (ET) University is my initiative to update you with daily dose of business terminologies used frequently in the "Economic Times". Reading and understanding the ET everyday is a must for an MBA aspirant, but due to lack of exposure our students find it difficult to understand ET language and terminologies; and stop buying one.

I shall manage this blog and try to come up with interesting facts and articles (my own or the ones appearing in the ET) here on ET Univ. blog, BUT it can only be a fruitful step if you discuss and ask questions by way of comments. Lets join as a community of like minded learners and work towards an ever shining Brand Amravati. 

Happy Learning !


Term of the Day:
Level Payment Amortization -

Repayment of a loan through a fixed number of fixed-amount monthly
installments. While the amount of the installment is same every month,
however, it is apportioned unequally between interest and principal
payments. In the early years, the major proportion (as much as 90
percent) of the installment amount goes towards payment of the
interest. It is only in later years, when most of the interest has
been paid off, that the principal balance begins to reduce
significantly. Also called straight line amortization.

*Level payment amortization is in the Accounting & Auditing and
Banking, Commerce, Credit, & Finance subjects.

*Level payment amortization appears in the definitions of the
following terms: level payment mortgage, straight line amortization,
level debt service, and amortization.

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Regards,

Ravi M. Sahu
Asst. Prof. - MBA
Cell:-727 681 0490,
        937 000 1214