amortization

amortization definition - business

amortization

A gradual reduction in the value of an amount over time. For example, amortization of a loan is a gradual reduction in the amount owed when a series of equal payments are each credited against periodic interest and a portion of principal. See also amortized loan.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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