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Vocabulary Entry
amortization
|noun • verb
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N
noun
The process of gradually reducing a debt or the cost of an asset over time through scheduled payments.
Example Sentences
"The bank explained the amortization of the loan to the borrowers."
"He opted for a 30-year amortization period for his mortgage."
"Amortization helps businesses spread the cost of an asset over its useful life."
V
verb
To reduce or pay off a debt or cost gradually through a series of payments.
Example Sentences
"They decided to amortize the loan over ten years."
"The company plans to amortize the expenses related to the new equipment."
"He will amortize the costs of the project monthly."