Amortization
/əˌmɔːr.tɪˈzeɪ.ʃən/noun
The process of gradually reducing a debt over time through scheduled payments.
Did you know?The term emerged in the 14th century, describing how debts could be 'killed off', echoing ancient practices of sacrificial offerings to appease creditors.
Etymological Timeline
Latin
Latin
amortizare
“to kill off or extinguish”
Old French
Old French
amortissier
“to kill, to put to death, to extinguish”
14th Century
Middle English
amortisen
“to extinguish or eliminate a debt”
Modern English
English
amortization
“the action of gradually paying off a debt or financial obligation”