Amortizing: meaning, definitions and examples

The term 'amortize' comes from the Latin word 'amortizare,' which means 'to kill off.' This reflects the process of reducing or eliminating a debt as payments are made. The word was first recorded in English in the early 19th century, primarily in legal and financial documents. Amortization became crucial with the growth of modern banking and lending practices, allowing borrowers to spread the cost of large loans over time. This concept not only applies to loans but also to intangible assets and certain liabilities, making it a fundamental term in accounting and finance. As financial instruments evolved, so did the techniques and strategies associated with amortizing debt, cementing its place in economic discussions.

This word's position of #33,412 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.

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• 33412 amortizing
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