How Do You Spell ACCELERATED AMORTIZATION?

Pronunciation: [ɐksˈɛləɹˌe͡ɪtɪd ɐmˌɔːta͡ɪzˈe͡ɪʃən] (IPA)

Accelerated amortization is a term used in accounting to refer to the speedy repayment of a debt. The IPA phonetic transcription of this word would be /əkˈsɛləreɪtəd əˌmɔrtəˈzeɪʃən/. The first syllable, "ac", is pronounced as /ək/, the second syllable, "cel", is pronounced as /ˈsɛl/, and the last syllable, "erated", is pronounced as /əˌreɪtəd/. The second word, "amortization", is split into four syllables, "a-mor-ti-za-tion", with each syllable pronounced as /əˌmɔrtəˈzeɪʃən/. Accurately spelling and pronouncing this term is important in accounting to ensure

ACCELERATED AMORTIZATION Meaning and Definition

1. Accelerated amortization is a financial term used to describe a faster repayment schedule for a debt or loan. It refers to a method of reducing the outstanding balance of a loan or debt obligation at a faster rate than the originally agreed-upon repayment schedule.

   Typically, a loan or debt is amortized over a specific period of time, during which the borrower makes regular payments that include both principal and interest portions. In the case of accelerated amortization, the borrower opts to increase the amount of principal paid off each period, resulting in a shorter repayment term.

   Accelerated amortization can be achieved by making extra principal payments in addition to the regular scheduled payments or by increasing the frequency of payments, such as making bi-weekly instead of monthly payments. By increasing the principal payment, the borrower reduces the total outstanding debt and therefore decreases the remaining interest that will accrue over time.

   This method is commonly used by borrowers who aim to save on interest costs and pay off their loans or debts more quickly. By accelerating the amortization process, they can reduce the burden of interest payments and potentially save significant amounts of money in the long run.

   Overall, accelerated amortization allows borrowers to exert greater control over their debt repayment, enabling them to become debt-free earlier and achieve financial goals more quickly.

Etymology of ACCELERATED AMORTIZATION

The etymology of the word "accelerated amortization" can be understood as follows:

1. Accelerated: The word "accelerated" is derived from the Latin word "acceleratus", which is the past participle form of "accelerare". "Accelerare" is a combination of "ad", meaning "to" or "towards", and "celerare", meaning "hasten" or "quick". Therefore, "accelerated" refers to the act of hastening or making something quicker.

2. Amortization: The word "amortization" comes from the French word "amortir", which means "to extinguish" or "to kill". It originates from the Latin word "admortire", where "ad" means "to" and "mortire" means "to kill" or "to die".