A type of calendar showing the timing and breakdown of interest payments and principal repayments associated with a loan.
Let’s say Ebenezer loans $100 to Tim over 3 years at 20% annual interest. Ebbie’s banker would do some fancy math and determine that Tim will need to pay $47.47 each year to fulfill his obligation. At the end of Year 1, $20 of the $47.47 would be an interest payment and the remaining $27.47 would be principal repayment, taking the balance down to $72.53 ($100 - $27.47 = $72.53).
Then, in Year 2, 20% of that ($14.51) would be paid in interest with the balance of $32.97 ($47.47 - $14.51) repaying principal and so on, until the entire balance is repaid at the end of Year 3, right on (amortization) schedule.
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Finance: What is an LLC?4 Views
finance a la shmoop. what is an LLC? LLC no that's not a rapper, that's a limited
liability company or look as professionals in the business pronounce
it. well why do you want one? because limiting your liability is a [man explains]
good thing if you're the one potentially liable for that stooge who slips on a
banana peel in your lobby waiting area and then Sue's you and wins. if you start
building your own company as an individual and not as an LLC and you get
sued for whatever, and you lose well you could lose everything you own.
that is the lawyers will come after your house your car your poodle your signed
Mila Kunis photograph collection, and legally well they'll be entitled to take
all of it. if you have existed under the legal structure of an LLC however, well [legal structures pictured]
the most you can be liable for is the assets of the business itself. yes
they'll take the company computer the remaining 17 months of lease on the
company building, and all your staplers and posted thingies but legally they
won't be able to go after your home your car your poodle or your autograph
collection. Mila is safe whew. so LLC's are a good thing they cost only a few
hundred bucks to set up these days, hi LegalZoom. so before you start up a lava
lamp company of your own think about setting up an LLC first. Mila and your [lava lamps in a row]
poodle gregory will thank you for it.
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