An amortization table is a data table that illustrates the process of paying off a loan, with details for every payment. For each month, the table provides your loan balance, interest charges on your loan, and the amount of principal that you pay off. Amortization tables help you understand how a loan works, and they can help you predict your outstanding balance or interest cost at any point in the future. With all that information, you can evaluate if you should pay off debts early, which loan is least expensive over time, and it even makes sense to borrow in the first place.
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