Amortization /əˌmɔːtaɪˈzeɪʃən/:
Word formation: amortiz (root, verb) + ation (suffix for nominalization)
- [noun, countable] The process of amortizing a debt[1]; loan[2] repayment. The paying off of debt with a fixed repayment schedule in regular installments[3] over a period of time.
Eg. Consumers will have to face the amortization of their mortgage[4].
- [noun, uncountable] The money devoted to[5] amortizing a debt.
Eg. EBITDA represents earnings before interest, taxes, depreciation and amortization.
- [noun, uncountable] The spreading out of capital expenses for intangible assets[6] over a specific period of time (usually over the asset’s useful life) for accounting and tax purposes. Amortization is similar to depreciation[7], which is used for tangible assets, and to depletion[8], which is used with natural resources.
Eg. The amortization of the fleet matches the revenue[9] they generate.
Quotation
In banking and finance, an amortizing loan is a loan where the principal of the loan is paid down over the life of the loan (that is, amortized) according to an amortization schedule, typically through equal payments. (http://en.wikipedia.org/wiki/Amortizing_loan)
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[1] Debt: deuda
[2] Loan: préstamo
[3] Instalments: plazos
[4] Mortgage: hipoteca
[5] Devoted to: dedicado a
[6] Assets: activos, propiedades, beneficios
[7] Depreciation: depreciación , devaluación
[8] Depletion: disminución, agotamiento, merma
[9] Revenue: ingresos
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