What does amortization mean?

amortization meaning in General Dictionary

The work or right of alienating lands to an organization that has been considered previously as moving all of them to lifeless arms or perhaps in mortmain

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  • the reduced amount of the value of an asset by prorating its price over a period of many years
  • payment of an obligation in a series of installments or transfers
  • The act or right of alienating lands to a business, which was considered previously as moving all of them to dead hands, or in mortmain.
  • The extinction of a debt, typically by way of a sinking-fund; also, the money thus compensated.

amortization meaning in Legal Dictionary

n. a periodic payment intend to pay a financial obligation where the interest and a percentage of key are included in each payment by a well established mathematical formula. Most frequently it's utilized on a proper residential property loan or funding of an automobile or other purchase. By figuring the interest in the declining key therefore the period of time regarding the loan, the monthly payments tend to be averaged and determined. Considering that the main portion of early repayments is interest, the principal doesn't decline rapidly until the second phases of this loan term. If amortization leaves a principal balance on close of times for repayment, this final lump sum is called a "balloon" payment.

amortization meaning in Law Dictionary

n alienation of places or tenements in mortmain. The reduction of the home of lands or tenements to mortmain. With its contemporary sense, amortization may be the operation of paying down bonds, stock, or any other indebtedness of a situation or business. Sweet.

amortization meaning in Etymology Dictionary

1670s, in mention of the places directed at religious sales, from Medieval Latin amortizationem (nominative amortizatio), noun of activity from past participle stem of amortizare (see amortize). Of debts, from 1824.

amortization meaning in Business Dictionary

1. Preferred term for the apportionment (charging you or composing down) associated with the price of an intangible asset as a functional price over the asset's expected of use life. It's the same as depreciation, the most well-liked term for concrete assets. The goal of both terms is to (1) mirror lowering of the book worth of the asset considering use and/or obsolescence, (2) distribute a large spending proportionately over a fixed duration, and thus (3) lessen the nonexempt earnings (perhaps not the actual or money earnings) of a company. In effect, it's a procedure by which invested capital of a strong is recovered by gradual sale of the company's asset(s) to its consumers over time. 2. Gradual repayment of financing in equal (or nearly equal) installments including portions interesting and principal quantities. See in addition standard payment amortization.

amortization meaning in Loan Terminology Glossary

 Loan payments by equal periodic quantities determined to repay the debt at the end of a fixed period, including accrued interest on outstanding stability.

amortization meaning in General Dictionary

(letter.) The act or right of alienating places to a corporation, which was considered formerly as moving all of them to dead hands, or in mortmain.

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  • (n.) The extinction of a debt, typically in the shape of a sinking fund; additionally, the income hence paid.

Sentence Examples with the word amortization

To provide for the repayment from earnings of the capital invested in a mining property and expended in development, and to provide for the depreciation in value of the plant and equipment, an amortization fund must be accumulated during the life of the mine; or, if it be desired to continue the business of mining elsewhere, a similar fund must be created for the purchase, development and equipment of a new property to take the place of the original deposit when that shall be exhausted.

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