Word of the Day: Amortize
PRONUNCIATION: [par-uhs-thee-zhuh]
MEANING:
verb 1. to pay off (as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund 2. to gradually reduce or write off the cost or value of (as an asset)
ETYMOLOGY: 1375–1425; Middle English amortisen < Anglo-French, Old French amortiss-, long stem of amortir literally, to kill, die < Vulgar Latin *a ( d ) mortīre (derivative of Latin mors, stem mort- death, with ad- ad-); -ize later replacing -is ( s )-, probably by association with Anglo-Latin a ( d ) mortizāre
USAGE: It's time we made permanent decisions on policy that begin to amortize and reduce our debt over time.
DID YOU KNOW?
When you amortize a loan, you "kill it off" gradually by paying it down in installments. This is reflected in the word's etymology. "Amortize" derives via Middle English and Anglo-French from Vulgar Latin "admortire," meaning "to kill." The Latin noun "mors" ("death") is a root of "admortire"; it is related to our word "murder," and it also gave us a word naming a kind of loan that is usually amortized: "mortgage." "Amortize" carries a different meaning in the field of corporate finance, where it means to depreciate the cost or value of an asset (as, for example, to reduce interest revenue on that asset for tax purposes).
PRONUNCIATION: [par-uhs-thee-zhuh]
verb 1. to pay off (as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund 2. to gradually reduce or write off the cost or value of (as an asset)
ETYMOLOGY: 1375–1425; Middle English amortisen < Anglo-French, Old French amortiss-, long stem of amortir literally, to kill, die < Vulgar Latin *a ( d ) mortīre (derivative of Latin mors, stem mort- death, with ad- ad-); -ize later replacing -is ( s )-, probably by association with Anglo-Latin a ( d ) mortizāre
USAGE: It's time we made permanent decisions on policy that begin to amortize and reduce our debt over time.
DID YOU KNOW?
When you amortize a loan, you "kill it off" gradually by paying it down in installments. This is reflected in the word's etymology. "Amortize" derives via Middle English and Anglo-French from Vulgar Latin "admortire," meaning "to kill." The Latin noun "mors" ("death") is a root of "admortire"; it is related to our word "murder," and it also gave us a word naming a kind of loan that is usually amortized: "mortgage." "Amortize" carries a different meaning in the field of corporate finance, where it means to depreciate the cost or value of an asset (as, for example, to reduce interest revenue on that asset for tax purposes).
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