Pronunciation: [ɐmˈɔːta͡ɪzd] (IPA) 
Amortized is a common financial term used to describe the calculation of a loan's repayment schedule. The word is pronounced /əˈmɔːtaɪzd/ and is spelled with an "a" after the "m" and before the "o". The "o" in the middle of the word is followed by a "t" and a "i" making "oti". This is then followed by "ze-d" to complete the word. The spelling of "amortized" may seem daunting at first, but with practice it can be easily memorized.
Amortized is a financial term that refers to the systematic and gradual reduction of a debt, liability, or an intangible asset over a specific period of time through regular payments or charges. This process involves allocating the cost or value of an item over its useful life or a predetermined period.
In the context of loans or mortgages, amortization involves the repayment of principal and interest through equally divided installments over an agreed-upon period. This means that the borrower pays a fixed amount each month, which includes both the interest charged on the outstanding loan balance as well as a portion of the principal. As the borrower makes regular payments, the outstanding balance gradually decreases until it is completely paid off by the end of the loan term.
Amortization can also be applied to intangible assets, such as patents or copyrights, where the cost of acquiring these assets is spread out over their estimated useful life. Similarly, it can refer to the depreciation of assets, where the cost of acquiring tangible assets, such as buildings or machinery, is spread out over the expected lifespan of the asset.
Overall, the concept of amortization allows for the gradual repayment or reduction of a debt or cost over time, ensuring a systematic and manageable approach to financial obligations.
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
The word "amortized" is derived from the Latin term "amortire", which means "to kill" or "to deaden". It originates from two Latin roots: "ad" meaning "to" and "mortis" meaning "death". In the context of finance and accounting, the word "amortize" refers to the gradual reduction of a debt or loan through regular payments over a fixed period. The term "amortization" signifies the process of dividing and spreading out the cost or expense over time until it is completely paid off or depreciated.
