When we talk about 'amortization', imagine this: You borrowed money and promised to pay it back in small parts over time. That's essentiallybasically what 'amortization' is.
'Amortization' means graduallyslowly reducing a debt by consistentlyregularly making small payments over a period of time. It's like completing a months-long puzzle by adding a piece every day.
'Amortization' pertains torelates to systematically reducing a liabilitydebt, such as a loan or mortgage, through regular payments over a predeterminedset in advance period of time, thus allowing for budget predictability and planning.
Context
Business
In marketing, the term 'amortization' can be used to describe the spreading of marketing expensesthe cost required for something over time. A marketing manager might note, 'The amortization of our advertising spend allows for more consistent budgeting.'
In financial technology, 'amortization' schedulesplan for assigned tasks are quite common. A FinTech specialist might say, 'Our loan app creates easy-to-understand amortization schedulesplan for assigned tasks for users to follow.'
In the real estate industry, 'amortization' refers to the consistent payment made on a mortgagea legal agreement to borrow money from a bank to buy a house over time. A real estate agent may advise, 'Your monthly mortgagea legal agreement to borrow money from a bank to buy a house payments include both interest and amortization.'
In business accounting, 'amortization' can refer to the gradual write-offreduce value of an asset of intangible assetsassets that are not physical. A CFO might say, 'We are amortizing our software development costs over five years.'
Practice in Professional Context
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