AMORTIZATION - Định nghĩa trong Từ điển tiếng Anh
amortization (noun)
/ˌæmərtəˈzeɪʃn/
Giải nghĩa:
In finance, the process of gradually paying off a debt.
Ví dụ:
The homeowners set up a 30-year amortization schedule for their mortgage.
amortization (noun)
/ˌæmərtəˈzeɪʃn/
Giải nghĩa:
In business, the process of reducing a value of an asset over time.
Ví dụ:
The company considered the amount of amortization when looking at the value of their physical assets.
Cách sử dụng
Amortization refers to paying off a debt by making regular payments over a period of time, usually with interest. For example, if you take out a loan to buy a car, the amount you owe will be reduced gradually over several years through regularly scheduled payments of principal and interest, until the loan is paid off completely. Amortization can also refer to the allocation of the cost of an asset over its useful life. For example, if you buy a machine for your business, you can divide the cost of the machine over several years to accurately reflect its depreciation and to gain tax benefits. Overall, amortization is used to gradually reduce the amount of a debt or the value of an asset over time through scheduled payments or allocation.
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