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installment

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
installment
A partial payment on a financial obligation. For example, an annual or monthly payment to the seller of an asset, such as a farm, on a long-term contract is an installment. Installments are composed partly of principal and partly of interest. If all the installments are of equal size, each subsequent payment incorporates an increasing amount of principal and a decreasing amount of interest.


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