INSTALLMENT Meaning and
Definition
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The term "installment" refers to a method of paying for goods or services over a specified period of time. It is commonly used in consumer financing and involves dividing the total cost of a product or service into smaller, regular payments called installments. These installments are typically spread out evenly over a predetermined period, such as weekly, monthly, or annually.
When purchasing a high-value item, such as a car or a house, many individuals may not have the immediate financial means to pay the full amount upfront. In such cases, an installment plan allows them to make regular payments over an extended period, making the purchase more affordable and manageable. Each installment covers a portion of the total price, including both the cost of the item and any applicable interest or fees.
Installment plans often involve the imposition of interest charges, which are additional amounts paid by the buyer to compensate the seller or financing institution for the deferred payment agreement. The interest rate is typically determined by various factors such as the buyer's creditworthiness and market conditions.
Installment plans can be arranged directly with the seller or through a third-party financing institution. In some cases, certain conditions may apply, such as a down payment or adherence to specific terms and conditions outlined in a contract.
Overall, installment payment options provide individuals with the opportunity to make purchases without immediately depleting their savings and allow them to budget their expenses more effectively over an extended period of time.
Top Common Misspellings for INSTALLMENT *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for INSTALLMENT
Etymology of INSTALLMENT
The word "installment" derives from the Latin word "installare", which means "to put in place" or "to establish". This Latin term is a combination of the prefix "in-" meaning "in" or "into" and the verb "stallum", which means "standing" or "place". Over time, the word evolved in English, and "installment" came to refer specifically to the act of installing or establishing something in a series of consecutive payments.
Similar spelling words for INSTALLMENT
- installing,
- instalment,
- inositol,
- instillment,
- instrument,
- instantly,
- instrumental,
- instance,
- instantiate,
- installation,
- instrumentate,
- instilment,
- instability.
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