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Amortized Meaning in English

word · lemma: amortize

ˈæmɝˌtaɪzd
AM-er-tyzd
ˈæmətaɪzd
AM-uh-tyzd

Definition

When a cost or debt is spread out and paid over a period of time in regular amounts, it is said to be amortized. Most commonly used with loans or intangible assets.

Usage & Nuances

Mostly used in financial and accounting contexts. Common phrases: 'amortized loan,' 'amortized cost,' 'fully amortized.' Do not confuse with 'depreciated' (for physical assets). The stress is on the first syllable: AM-or-tized.

Example Sentences

The loan is amortized over 20 years.

basic

The cost was amortized monthly.

basic

The equipment's value was amortized over five years.

basic

The interest and principal are both amortized throughout the term of the mortgage.

natural

We amortized the software license so the yearly expense was lower.

natural

If the debt isn't amortized properly, you'll pay more in the long run.

natural