PERIODIC PAYMENT Meaning and
Definition
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Periodic payment refers to a regular and recurring payment made at fixed intervals over a certain period of time. It is a financial arrangement where an individual or an entity agrees to pay a specific amount to another party on a scheduled basis. These payments can be made monthly, quarterly, annually, or at any other predetermined time frame based on the agreed terms.
In personal finance, periodic payments commonly occur in the form of mortgage repayments, credit card bills, insurance premiums, or subscription services. Mortgage payments, for instance, involve regular installments of principal and interest made by a borrower to a lender in order to gradually pay off a home loan. Similarly, credit card bills require the cardholder to make regular payments towards the balance owed.
Businesses often engage in periodic payments as well. For instance, a company may reimburse its employees through regular paychecks or make periodic payments to suppliers for goods or services received. This type of payment arrangement allows businesses to efficiently manage their cash flow and ensure obligations are met in a timely manner.
Periodic payments generally follow a schedule and may continue until a certain condition is met, such as the repayment of a loan or the expiration of a contract. It is important for both parties involved to adhere to the agreed-upon terms to avoid disruptions or complications in the payment process.
Common Misspellings for PERIODIC PAYMENT
- oeriodic payment
- leriodic payment
- -eriodic payment
- 0eriodic payment
- pwriodic payment
- psriodic payment
- pdriodic payment
- prriodic payment
- p4riodic payment
- p3riodic payment
- peeiodic payment
- pediodic payment
- pefiodic payment
- petiodic payment
- pe5iodic payment
- pe4iodic payment
- peruodic payment
- perjodic payment
- perkodic payment
- peroodic payment
Etymology of PERIODIC PAYMENT
The word "periodic" comes from the Latin word "periodicus", which in turn is derived from the Greek word "periodikos". "Periodikos" combines the Greek words "peri" meaning "around" or "during", and "hodos" meaning "way" or "journey". Thus, "periodic" suggests something that occurs repeatedly or at regular intervals.
The word "payment" has a slightly different etymology. It traces back to the Old French word "paiement", which is derived from the verb "paier", meaning "to pay". The Old French term itself comes from the Latin word "pacare", meaning "to appease" or "to make peaceful", which later evolved to mean "to settle a debt".
When combined, the words "periodic payment" refer to a recurrent or regular installment of money paid to fulfill a financial obligation.
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