Installment to Amortize One Dollar

A mathematically computed factor derived from Compound Interest functions that offers the level periodic payment required to retire a $1 loan within a certain time frame. The periodic installment must exceed the periodic interest rate. See also Amortization; Amortization Schedule.

A mathematically computed factor derived from Compound Interest functions that offers the level periodic payment required to retire a $1.00 loan within a certain time frame. The periodic installment must exceed the periodic interest rate. See Amortization, Amortization Schedule.
Examples:

• $.2638 is required to amortize $1.00 at 10% interest, with 5 yearly payments.

• $.1627 is required to amortize $1.00 at 10% interest with 10 yearly payments.

• $.1175 is required to amortize $1.00 at 10% interest, with 20 yearly payments.