What is Amortization

Do you know what is amortization? It is a term that we need to know if we buy some investment using loan. I just found the term after reading ‘ Why We Want You To be Rich’ and searching about it via internet. This is the definition about amortization I’ve found

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WHAT IS AMORTIZATION

1. The paying off of debt in regular installments over a period of time.

2. The deduction of capital expenses over a specific period of time (usually over the asset’s life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
(Investopedia)

I think it is easy to understand as amortization is the repayment of a loan by installments. I think for those buy car or house know about this. It has calculation and we can search it via net.
Okay, that’s all for finance ‘word’ today. If you have any additional information about amortization, let’s share with us. Or if you have any finance word to share, let’s email me at poorbloggerz [at] gmail.com

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