Amortization is the gradual reduction of a term debt by periodic payments sufficient to pay the current interest and to eliminate the principal at maturity. The amount of periodic payments depends, in part, on the principal, the interest rate and the length of time of the loan.

An amortization schedule is basically a table containing loan details. The beginning of the table shows the amount borrowed, as well as the time period of sche » Read more: What is Car Loan Amortization and Why Should I Care