Constant annual principal and interest repayment

Constant annual principal and interest repayment

The annual payment made by a borrower, consisting of an amortisation of principal and an interest component. This payment remains unchanged throughout the entire repayment period. As the debt is worked down the interest payments are gradually reduced, while the principal repayment rate increases.

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Part of Speech: noun
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Industry/Domain: Banking
Category: Investment banking
Company: UBS
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