„Amortization“

What does Amortization stand for?

1. The provision to pay a debt over a period of time.

2. The gradual repayment of borrowings in a series of installments.

3. A transaction or security where the principal reduces over the life of the agreement.

4. The writing off or reduction in value of an intangible asset over time (c.f.depreciation)

5. Allocation of the cost of an asset over its estimated useful life.

Source:

Fabozzi, Frank J., Modigliani, Franco., and Jones, Frank J. “Foundations of Financial Markets and Institutions.” 4th Edition. Pearson Prentice Hall, 2010.

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