Amortization

Pronunciation: /əˌmɔːrtɪˈzeɪʃən/

Definitions of amortization

noun the action or process of gradually reducing or writing off a debt, such as a loan or mortgage, by making periodic payments

Example Sentences

A1 Amortization is the process of paying off a debt over time.

A2 I learned about amortization in my finance class.

B1 The bank provided a detailed schedule of the loan amortization.

B2 Understanding the concept of amortization is crucial for financial planning.

C1 The company implemented a new amortization schedule to manage their debt more effectively.

C2 The financial analyst presented a comprehensive report on the company's amortization strategy.

Examples of amortization in a Sentence

formal The company's financial statements include a detailed schedule of amortization for its intangible assets.

informal I have to remember to factor in the amortization costs when budgeting for the project.

slang I'm trying to wrap my head around how this whole amortization thing works.

figurative Just like how a loan is gradually paid off through amortization, our efforts will eventually lead to success.

Grammatical Forms of amortization

• past tense: amortized
• plural: amortizations
• comparative: more amortized
• superlative: most amortized
• present tense: amortizes
• future tense: will amortize
• perfect tense: has amortized
• continuous tense: amortizing
• singular: amortization
• positive degree: amortization
• infinitive: to amortize
• gerund: amortizing
• participle: amortized

Origin and Evolution of amortization

First Known Use: 1250 year

Language of Origin: Latin

Story behind the word: The word 'amortization' originated from the Latin word 'ad mortem', which means 'to death' or 'to kill'.

Evolution of the word: Originally used in the context of accounting and finance to refer to the gradual extinguishing of a debt through regular payments, the term 'amortization' has evolved to also encompass the gradual reduction of an intangible asset's value over time.