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Legal Definitions - periodic payment

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Definition of periodic payment

A periodic payment is a payment that is made over a period of time instead of a one-time payment for the full amount. It is one of a series of payments made over time. This is different from a lump-sum payment, which is a payment of a large amount all at once.

Examples of periodic payments include:

  • Monthly mortgage payments
  • Car loan payments
  • Installment payments for a purchase

These examples illustrate the definition of periodic payment because they are payments that are made over a period of time, usually in equal amounts. For example, a monthly mortgage payment is a periodic payment because it is made every month for a set period of time until the loan is paid off.

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Simple Definition

A periodic payment is when someone pays a little bit of money over time instead of paying all at once. For example, instead of paying for a toy with one big payment, you might pay a little bit of money each week until you have paid for the whole toy. This is different from a lump-sum payment, which is when you pay all the money at once.

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