Business Terms and Jargon Explained

What is Installment

This is where a payment is not paid all at once. The amount is paid over a period of time broken into instalments (pieces). This means that the amount owed is now on credit and interest may be charged. The instalments may include the interest. E.g. 1000 is paid over 12 months with an interest rate of 10%. The total amount owed is then 1100. This divided by twelve gives 91.66

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Term created / updated 2006-05-10 23:36:05

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