Amortize: meaning, definitions and examples
๐ฐ
amortize
[ ษหmษหrtษชzaษชz ]
finance process
To amortize means to gradually pay off a debt over time through scheduled, regular payments. This process often applies to loans, where borrowers repay both the principal and the interest over a specified period. Amortization allows individuals and businesses to manage their cash flow more effectively, as the payments remain consistent throughout the loan term. It can also refer to the gradual reduction of an intangible asset's value over time.
Synonyms
Examples of usage
- The bank allows you to amortize your mortgage over 30 years.
- She decided to amortize the loan in monthly installments.
- The company will amortize the costs of the new equipment over five years.
Translations
Translations of the word "amortize" in other languages:
๐ต๐น amortizar
๐ฎ๐ณ เค เคตเคฎเฅเคฒเฅเคฏเคจ เคเคฐเคจเคพ
๐ฉ๐ช amortisieren
๐ฎ๐ฉ mengamortisasi
๐บ๐ฆ ะฐะผะพััะธะทัะฒะฐัะธ
๐ต๐ฑ amortyzowaฤ
๐ฏ๐ต ๅๅดใใ
๐ซ๐ท amortir
๐ช๐ธ amortizar
๐น๐ท amortisman yapmak
๐ฐ๐ท ์ํํ๋ค
๐ธ๐ฆ ุชุฎููุถ ุงูููู ุฉ
๐จ๐ฟ amortizovat
๐ธ๐ฐ amortizovaลฅ
๐จ๐ณ ๆ้
๐ธ๐ฎ amortizirati
๐ฎ๐ธ afskrift
๐ฐ๐ฟ ะฐะผะพััะธะทะฐัะธั
๐ฌ๐ช แแแแ แขแแแแชแแ
๐ฆ๐ฟ amortizasiya
๐ฒ๐ฝ amortizar
Etymology
The term 'amortize' originates from the late Middle English word 'amortiser', which means 'to kill' or 'to put an end to'. This is derived from the Latin word 'amortire', which means to kill or to extinguish. The concept of amortization has evolved over time, moving from a broad meaning of extinguishing something (like a debt) to a more specific financial application. Amortization began to gain prominence in the realm of finance in the 17th century, where it was used to describe the gradual repayment of debts or the periodic decrease in the value of assets. By the 19th century, the term was widely adopted in accounting and banking practices, reflecting the growing complexity of financial transactions. Today, amortization is an essential concept in personal and corporate finance, impacting how loans, mortgages, and investments are managed.