Amortized: meaning, definitions and examples
๐ฐ
amortized
[ รฆหmษหrtaษชzd ]
finance, accounting
Amortized refers to the gradual reduction of a debt or an asset's value over time through scheduled payments or depreciation. In the context of loans, amortized payments allow borrowers to pay off their principal along with interest in a structured manner. This means that with each payment made, the total amount owed decreases systematically. Amortization schedules are often used to outline the timing of these payments and the allocation between interest and principal amounts.
Synonyms
discounted, liquidated, repaid
Examples of usage
- She made amortized payments on her mortgage.
- An amortized loan has predictable monthly payments.
- The company reported its amortized costs for the fiscal year.
Translations
Translations of the word "amortized" in other languages:
๐ต๐น amortizado
๐ฎ๐ณ เค เคฎเฅเคฐเฅเคเคพเคเคเฅเคก
๐ฉ๐ช abgeschrieben
๐ฎ๐ฉ amortisasi
๐บ๐ฆ ะฐะผะพััะธะทะพะฒะฐะฝะธะน
๐ต๐ฑ amortyzowany
๐ฏ๐ต ๅๅดใใใ
๐ซ๐ท amorti
๐ช๐ธ amortizado
๐น๐ท amortisman
๐ฐ๐ท ์ํ๋
๐ธ๐ฆ ู ูุณุชููููู
๐จ๐ฟ amortizovanรฝ
๐ธ๐ฐ amortizovanรฝ
๐จ๐ณ ๆ้็
๐ธ๐ฎ amortiziran
๐ฎ๐ธ afskrifaรฐ
๐ฐ๐ฟ ะฐะผะพััะธะทะฐัะธัะปะฐะฝาะฐะฝ
๐ฌ๐ช แแแแ แขแแแแ แแแฃแแ
๐ฆ๐ฟ amortizasiya olunmuล
๐ฒ๐ฝ amortizado
Etymology
The term 'amortized' originates from the Latin word 'amortizare', which means 'to kill' or 'to extinguish.' The concept refers to the gradual extinguishment of a debt or obligation. Initially used in the context of settling debts or liabilities, the term evolved to encompass not only the repayment of loans but also the systematic allocation of costs and financial obligations over time. In the English language, 'amortize' started being adopted in the early 17th century, gaining prominence in financial discourse. The practice of amortization became a fundamental aspect of modern finance, especially with the rise of home mortgages and corporate financing options in the 19th and 20th centuries. Today, the concept is widely utilized in accounting, lending, and investment analysis.