For an example, you might borrow $25,000.00 for a new auto and agree to pay the bank one payment each month for 60 months. The interest rate on the loan might be 5.5%.
In this scenario, the loan amount is $25,000.00. The term of the loan is 60 months or 5 years. The term of the loan could also be described as 60 payments since there will be one payment per month for 5 years. The repayment frequency is one month since periodic repayments will be made once a month. The periodic repayment, which is calculated by KMyMoney, would be $477.53.
A “loan schedule” is a chart or table that shows the date that a repayment should be made and the amount of each periodic repayment. Often, these schedules break the periodic payment down into its constituent parts: the principal repayment, the interest payment, and the recurring fees payment.
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