"Amortize" Pronounce,Meaning And Examples
"Amortize" Natural Recordings by Native Speakers
"Amortize" Meaning
To amortize means to gradually pay off a debt over a specific period of time, usually through regular payments that include both interest and principal. These payments are structured in a way that the loan is fully repaid by the end of the scheduled term. It can also refer to spreading the cost of an asset over its useful life for accounting or tax purposes.
"Amortize" Examples
1. To amortize a loan means to pay it off gradually over time through regular payments that include both interest and principal. For example: "John is amortizing his mortgage with monthly payments of $1,200, which includes both interest and a portion of the loan balance."
2. In accounting, amortization refers to the process of spreading the cost of an intangible asset over its useful life. Example: "The software company is amortizing the cost of developing a new app over five years."
3. When you amortize a debt, you create a schedule that outlines how it will be paid off. For instance: "The business created an amortization schedule to ensure all creditors would be paid in full within three years."
4. In finance, the term can also refer to reducing the risk associated with an investment by diversifying or hedging. Example: "Investors often amortize risk by investing in a mix of stocks, bonds, and other assets."
5. Amortization can also describe the decrease in value of a bond's price as it approaches maturity. For example: "As the bond nears its maturity date, its amortization causes its market value to fall closer to its face value."
"Amortize" Similar Words
Amortisable
"Amortisable" refers to an asset or expense that can be written off or reduced over time through systematic depreciation or amortization. It is commonly used in accounting and finance to describe the process of spreading the cost of an intangible asset (such as a patent or goodwill) or a loan over its useful life. This allows companies to recognize the expense gradually, instead of all at once.
Amortisation
Amortisation refers to the process of gradually paying off a debt or loan over time through regular payments. These payments typically include both principal (the original amount borrowed) and interest, reducing the outstanding balance until it is fully paid. It can also refer to the spreading out of costs or intangible assets, like patents or goodwill, over a specific period for accounting purposes.
Amortise
To amortize refers to spreading out the cost of an asset or a loan over a specific period of time, usually through equal payments that include both principal and interest. It can also refer to the process of gradually reducing a debt or an intangible asset's value until it becomes zero. In finance, amortization is commonly used for mortgage payments, loan repayments, and depreciation of assets.
Amortised
"Amortised" refers to the process of spreading out the cost or debt of an asset or loan over a specific period of time, usually through equal payments. It also commonly refers to the gradual reduction of a debt through regular payments that include both interest and principal.
Amortisement
Amortisement refers to the process of gradually reducing or writing off the value of an asset over a specific period, typically through depreciation or loan repayment. It can also refer to the cancellation or extinction of a debt over time. In accounting, amortization is used to spread the cost of an intangible asset (like patents or goodwill) evenly over its useful life. In finance, it often pertains to the repayment of a loan principal in installments.
Amortising
"Amortising" refers to the process of paying off a debt or loan over time through regular payments that include both principal and interest. These payments are structured in a way that the debt is gradually reduced until it is fully paid off. It is commonly used in the context of mortgages, loans, or annuities.
Amortizable
"Amortizable" refers to an asset or expense that can be gradually written off or reduced in value over a specific period of time, usually for tax or accounting purposes. It often relates to the process of spreading the cost of an intangible asset (such as patents, trademarks, or goodwill) evenly across the duration of its useful life.
Amortization
Amortization refers to the process of gradually paying off a debt or loan through regular installment payments over a specific period of time. It involves both principal repayment and interest, where each payment reduces the outstanding balance until the entire amount is fully paid off. In finance, it can also refer to the spreading out of an expense or asset's cost over its useful life for accounting or tax purposes.
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