Amortization Schedules
Amortization Schedules & Tables | Definition
(1) The liquidation of a debt on an installment basis. Retiring an interest bearing liability by gradual reduction through a series of installment payments, as opposed to one lump-sum payment. For example, home mortgages are typically amortized by paying part of the principal amount each month.(2) An accounting technique for gradually eliminating a liability, deferred charge, or capital expenditure over a period of time. Accounting amortization includes such practices as depreciation, depletion, write-off of intangibles, prepaid expenses, and deferred charges.
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