amortization

Listen See in a sentence

The definition of amortization is the process of setting aside money to pay off a debt over time.

(noun)

The yearly premium for car insurance divided into monthly payments is an example of amortization.

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See amortization in Webster's New World College Dictionary

noun

  1. an amortizing or being amortized
  2. money put aside for amortizing a debt, etc.
    also amortizement

See amortization in American Heritage Dictionary 4

noun
  1. a. The act or process of amortizing.
    b. The money set aside for this purpose.
  2. In reckoning the yield of a bond bought at a premium, the periodic subtraction from its current yield of a proportionate share of the premium between the purchase date and the maturity date.

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© 1996-2013 LoveToKnow, Corp. All Rights Reserved. Audio pronunciation provided by LoveToKnow, Corp.