Cách sử dụng
The word "amortize" is often used in the context of finance or accounting. It means to gradually pay off a debt or expense over time, typically through regular payments. For example, if you take out a loan to buy a house, you will need to make regular payments over a set period of time (such as 30 years) to fully pay off the loan. Each payment you make will include both interest (the cost of borrowing the money) and a portion of the principal (the amount you borrowed). As you make these payments, you will "amortize" the loan, which means you are gradually reducing the amount you owe until the loan is fully paid off.Similarly, if a company purchases an asset like a piece of machinery, they may choose to amortize the cost of that asset over its useful life. This means they will gradually reduce the cost of the asset on their balance sheet over time, reflecting the fact that the asset is becoming less valuable as it ages or becomes obsolete.Overall, the word "amortize" is most commonly used in financial or accounting contexts to describe the gradual payment or reduction of a debt or expense over time.