Interest is charged on your loan each month (or another pre-determined period). When calculating the interest charge, the amortization table shows you where to multiply the remaining loan balance by your monthly interest rate. This is especially important with long-term loans. When looking for a loan, it is usually best to find one that requires interest payments in the early years (as opposed to one that boasts "interest-free for 24 months!").
This site offers information designed for educational purposes only. The information on this Website is not intended to be comprehensive, nor does it constitute advice or our recommendation in any way. We attempt to ensure that the content is current and accurate but we do not guarantee its currency and accuracy. You should carry out your own research and/or seek your own advice before acting or relying on any of the information on this Website.