Amortization (noun)

The process of gradually paying off a debt through regular payments of interest and principal over a period of time.

Origin:

Derived from the verb "amortize" which comes from the latin word "amortizare" which means "to kill, bury or destroy".

Examples:

  1. The bank offered a 30-year amortization schedule for the mortgage loan.
  2. She was happy with her amortization plan for her car loan since it allowed her to pay it off in 5 years.
  3. The amortization of the debt allowed the company to gradually pay off the borrowed money over time.
  4. The amortization schedule shows how much of each payment goes towards interest and how much goes towards the principal balance.
  5. Amortization is a way to make large loans more manageable by spreading out the payments over a longer period of time.
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