How Do You Spell AMORTIZATION TABLE?

Pronunciation: [ɐmˌɔːta͡ɪzˈe͡ɪʃən tˈe͡ɪbə͡l] (IPA)

Amortization Table is spelled /əˌmɔː(r)tɪˈzeɪʃən ˈteɪbəl/ in IPA phonetic transcription. The word "amortization" is derived from the French word "amortir" which means "to deaden". The spelling of "amortization" follows the common English pattern of using "tion" to form a noun from a verb. The word "table" is spelled similarly to how it sounds, with a silent "e" at the end. An amortization table is often used in finance to show a schedule of payments for a loan or mortgage over time.

AMORTIZATION TABLE Meaning and Definition

1. Amortization table is a financial tool used to calculate and display the schedule of payments for a loan or mortgage over a set period of time. It provides a detailed breakdown of how each payment is allocated between principal and interest, as well as the remaining loan balance after each payment.

   The table typically includes columns for the payment number, payment date, payment amount, interest paid, principal paid, and remaining balance. It is commonly presented in a tabular format, allowing individuals to easily track the progress of their loan repayment.

   The amortization table is based on the principles of amortization, which is the process of gradually reducing a loan balance through periodic payments. Each payment is divided into two components - interest and principal. Initially, a larger portion of the payment goes towards interest, while over time, the portion allocated to principal increases.

   The amortization table is a valuable tool for borrowers as it helps them understand the financial implications of their loan. It enables them to plan their budget and assess the impact of additional payments or changes in interest rates on their loan balance. By providing a clear breakdown of each payment, it also allows borrowers to track their progress and determine how long it will take to fully repay the loan.

Etymology of AMORTIZATION TABLE

The word "amortization" comes from the Latin term "ad mortem", which means "to death" or "to kill". In finance, "amortization" refers to the process of gradually paying off a debt or loan over a specific period of time.

The word "table" in this context refers to a written or printed schedule that presents detailed information in a structured format. It is derived from the Old French word "table", which in turn comes from the Latin word "tabula", meaning "a board" or "a flat surface for writing".

So, when combined, the term "amortization table" refers to a chart or schedule that outlines the gradual repayment of a loan or debt, typically showing the principal amount, interest rate, period of payment, and allocation of payments towards principal and interest.