LEVEL PAYMENT AMORTIZATION
\lˈɛvə͡l pˈe͡ɪmənt ɐmˌɔːta͡ɪzˈe͡ɪʃən], \lˈɛvəl pˈeɪmənt ɐmˌɔːtaɪzˈeɪʃən], \l_ˈɛ_v_əl p_ˈeɪ_m_ə_n_t ɐ_m_ˌɔː_t_aɪ_z_ˈeɪ_ʃ_ə_n]\
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Scheduled loan repayment. Schedules a fixed number of fixed-amount monthly installments. Interest and principal allocation shifts from month to month. Early on, interest allocation is high. Over time, interest allocated decreases and is balanced by principal payment allocation increases. Also known as straight line amortization.
By Henry Campbell Black
