AMORTIZES Meaning and
Definition
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Amortizes is a verb that refers to the process of gradually reducing or paying off a debt or loan through regular payments over a specified period. It involves the systematic allocation of payments towards the principal amount and interest charges, resulting in the gradual decrease of the outstanding balance.
In financial terms, amortization aims to evenly distribute the cost of an asset or liability over its estimated useful life or loan term. It is commonly applied when discussing mortgages or other long-term loans. When a borrower makes regular payments, a portion of the payment goes towards reducing the principal owed, while the remainder covers the interest accrued. As the principal amount decreases, so does the associated interest, causing a change in the payment allocation between principal and interest over time.
Amortization schedules aid in visualizing the repayment process by illustrating how each payment contributes to both principal reduction and interest payment. The schedule outlines the amount owed at the beginning of each period, the payment due, and the portion allocated to principal and interest. Over time, as more payments are made, the proportion allocated towards principal gradually increases, accelerating the amortization process.
Amortizes can also be used metaphorically outside of financial contexts. It can refer to the gradual reduction or dispersal of a recurring expense or the systematic spreading of a long-term cost over a specific time frame to alleviate its impact on an entity's finances.
Common Misspellings for AMORTIZES
Etymology of AMORTIZES
The word "amortizes" is derived from the Latin term "amortire", which means "to kill" or "to die off". In Old French, the term transformed into "amortir", which meant "to dampen" or "to extinguish". The term later evolved in Middle French to "amortir", with the meaning of "to reduce gradually" or "to deaden". Eventually, the English language adopted the word "amortize" with the specific sense of gradually paying off a debt or loan over time.
Conjugate verb Amortizes
CONDITIONAL
I
would amortize
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would amortize
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would amortize
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would amortize
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would amortize
FUTURE
I
will amortize
we
will amortize
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will amortize
he/she/it
will amortize
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will amortize
FUTURE PERFECT
I
will have amortized
we
will have amortized
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will have amortized
he/she/it
will have amortized
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will have amortized
PAST
I
amortized
we
amortized
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amortized
he/she/it
amortized
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amortized
PAST PERFECT
I
had amortized
we
had amortized
you
had amortized
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had amortized
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had amortized
PRESENT
I
amortize
we
amortize
you
amortize
he/she/it
amortizes
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amortize
PRESENT PERFECT
I
have amortized
we
have amortized
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have amortized
he/she/it
has amortized
they
have amortized
I
am amortizing
we
are amortizing
you
are amortizing
he/she/it
is amortizing
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are amortizing
I
was amortizing
we
were amortizing
you
were amortizing
he/she/it
was amortizing
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were amortizing
I
will be amortizing
we
will be amortizing
you
will be amortizing
he/she/it
will be amortizing
they
will be amortizing
I
have been amortizing
we
have been amortizing
you
have been amortizing
he/she/it
has been amortizing
they
have been amortizing
I
had been amortizing
we
had been amortizing
you
had been amortizing
he/she/it
had been amortizing
they
had been amortizing
I
will have been amortizing
we
will have been amortizing
you
will have been amortizing
he/she/it
will have been amortizing
they
will have been amortizing
I
would have amortized
we
would have amortized
you
would have amortized
he/she/it
would have amortized
they
would have amortized
I
would be amortizing
we
would be amortizing
you
would be amortizing
he/she/it
would be amortizing
they
would be amortizing
I
would have been amortizing
we
would have been amortizing
you
would have been amortizing
he/she/it
would have been amortizing
they
would have been amortizing
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