Amortize : (빚을) 분할 상환하다, (무형 자산/사용권리/라이센스 등을) 감채상환하다, 분할 상환하다
Amortization : (부채의) 할부 상환(액)
1)
amortize, this is to pay something back by paying small regular amounts
I bought the car but I needed a loan to buy the car, so I amortized the car
I amoartiaze the loan over five years, over 60 installments
to pay something off by installments
normally in business, you can't pay the full cost of something immediately, you can't pay for it up front directly
it's effectively to liquidate a debt by paying a bit each time or a bit every month and like that the debt decreases
to pay off a debt with regular payments
in order to buy the flat I borrowed, a hundred thousand Euros which I had to amortize over a period of 25 years
2)
we also use this amortziation in accountancy
if you buy something for your business, for example you buy a computer, there are different ways of dealing with it for taxation. you can say though that the computer will last you for three years and then you amortize the compurter over a three-year period. you write off the cost of this asset by reducing it by a certain amount each year
if you have a company that lets houses, you need to buy furniture for these houses and you can amortaize this furniture over a period of five years, you take a bit of the cost each year until it decreases to nothing
they use this to amortize, particularly for intangible assets
a license or something like that and the license it to do this is valid for five years and then you write this off, you reduce your profits by a certain amount each year to amortize this payment
to reduce the cose of an assets gradually
to write off the initial cost of an assets over a period of time
3)
notice, amortize with a 'z' for American, amortise with an 's' for Britian
Formality : 6 - 6.5
댓글