Installment definitions
| Word backwards | tnemllatsni |
|---|---|
| Part of speech | Noun |
| Syllabic division | in-stall-ment |
| Plural | The plural of the word installment is installments. |
| Total letters | 11 |
| Vogais (3) | i,a,e |
| Consonants (5) | n,s,t,l,m |
What is an Installment?
An installment refers to a sum of money that is paid on a recurring basis at specific intervals until the total amount is repaid. This type of payment plan is commonly used for loans, mortgages, and other financial agreements where the borrower needs to pay back a large sum of money over time.
How Do Installments Work?
When you take out a loan or make a big purchase using installment payments, you agree to pay back the amount borrowed plus any interest charged by the lender. The total amount is divided into equal payments that are spread out over a set period of time, such as monthly or bi-weekly payments.
Each installment consists of both a portion of the principal amount borrowed and the interest accrued on the remaining balance. As you make payments over time, the proportion of the payment that goes towards the principal will increase, while the interest portion will decrease.
Benefits of Installment Payments
One of the main benefits of installment payments is that they allow borrowers to make big-ticket purchases or take out loans without having to pay the full amount upfront. This can make essential purchases more accessible to individuals who may not have the cash on hand to cover the cost in one lump sum.
Additionally, installment payments can help borrowers budget more effectively since they know exactly how much they need to pay each month. This predictability can make it easier to manage finances and ensure that payments are made on time to avoid late fees or defaulting on the loan.
Overall, installment payments provide a flexible and manageable way for individuals to access the funds they need while spreading out the cost over time. By understanding how installments work and their benefits, borrowers can make informed decisions about their financial obligations.
Installment Examples
- I will pay for the new couch in monthly installments.
- The latest software update will be released in three separate installments.
- She read the novel in installments, eagerly waiting for each new chapter.
- The artist's mural was painted in colorful installments on the wall.
- The TV show will air its final installment next week.
- The car loan can be paid off in 36 monthly installments.
- The new kitchen renovations will be completed in three installments.
- The smartphone company released the latest model in installments of new features.
- She signed up for the cooking class, which was divided into six weekly installments.
- The book series will be released in five installments over the next year.