The spelling of the word "amortise" is derived from its French origin, "amortir". In IPA phonetic transcription, it is spelled /əˈmɔːtaɪz/. The first syllable "a-" is pronounced like "uh", followed by "mor" as in "more", and ending with "-tise", which is pronounced as "tyz". The word is commonly used in finance and accounting to refer to the gradual reduction of a debt over time. This spelling is used predominantly in British English, while in American English, the word is typically spelled "amortize".
Amortise is a financial term that refers to the process of gradually reducing or amortizing a debt or an intangible asset over a period of time. It involves dividing the initial principal amount or value into multiple installments or payments, paid regularly over a defined period.
Typically used in the context of loans or mortgages, amortization allows borrowers to repay their debt gradually, instead of making a large lump-sum payment. Each installment consists of both principal and interest portions, with the earlier payments primarily covering the interest and the later payments increasingly contributing towards the principal.
In addition to debts, the term amortise is also used for intangible assets such as copyrights, patents, or trademarks. When an intangible asset is amortised, its value is spread out and expensed over the estimated useful life of the asset. Amortising these assets allows businesses to allocate the costs of acquiring intellectual property or intangible rights over time, reflecting their decreasing value as they are used or become obsolete.
Amortisation schedules are often used to outline the payment plan for a loan or to track the depletion of an intangible asset. These schedules detail each installment payment, the portion allocated to interest, the portion allocated to principal, and the outstanding balance after each payment. Overall, the process of amortisation helps individuals and businesses manage their financial obligations and accurately reflect the declining value of their assets.
To transfer lands to mortmain.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
The word "amortise" has its etymology rooted in Latin. It is derived from the Latin verb "admortizare", which means "to kill, to extinguish". This Latin verb is a combination of "ad" meaning "to" and "mortis" meaning "death". Over time, this Latin verb was adapted into Old French as "amortir", which meant "to extinguish, to make dead". From Old French, it entered into English as "amortise". In the financial context, the word "amortise" refers to the process of gradually paying off a debt or a mortgage.