Amortisation
noun
Amortisation is the process of reducing a debt by making regular payments over time, which include both principal and interest.
The amortisation of the loan will take 15 years, with monthly payments.
Usage tips
Neutral
loan amortisation,amortisation schedule,full amortisation
noun
Amortisation refers to the gradual write-off of the value of an intangible asset over its useful life.
The amortisation of the patent was recorded as an annual expense.
Usage tips
Formal
amortisation expense,straight-line amortisation,amortisation methods
noun
Amortisation is the process of reducing a debt by making regular payments over time, which include both principal and interest.
The amortisation of the loan will take 15 years, with monthly payments.
Usage tips
Neutral
loan amortisation,amortisation schedule,full amortisation
noun
Amortisation refers to the gradual write-off of the value of an intangible asset over its useful life.
The amortisation of the patent was recorded as an annual expense.
Usage tips
Formal
amortisation expense,straight-line amortisation,amortisation methods
Definition 1 of 2
Pro Tip 1/3Understanding Payments
Comprehending how amortisation divides payments over time can help with financial planning.
When taking out a loan, knowing the amortisation schedule aids in budgeting.
Pro Tip 2/3Impact on Costs
Different amortisation methods can affect the total amount paid over the life of a loan.
A shorter amortisation period usually results in higher monthly payments yet less total interest paid.
Pro Tip 3/3Intangibles Consideration
In accounting, amortisation of intangible assets requires careful tracking of their value over time.
Investors should consider how a company manages its asset amortisation.
Pro Tip 1/3Understanding Payments
Comprehending how amortisation divides payments over time can help with financial planning.
When taking out a loan, knowing the amortisation schedule aids in budgeting.
Pro Tip 2/3Impact on Costs
Different amortisation methods can affect the total amount paid over the life of a loan.
A shorter amortisation period usually results in higher monthly payments yet less total interest paid.
Pro Tip 3/3Intangibles Consideration
In accounting, amortisation of intangible assets requires careful tracking of their value over time.
Investors should consider how a company manages its asset amortisation.
Pro Tip 1/3Understanding Payments
Comprehending how amortisation divides payments over time can help with financial planning.
When taking out a loan, knowing the amortisation schedule aids in budgeting.
Pro Tip 2/3Impact on Costs
Different amortisation methods can affect the total amount paid over the life of a loan.
A shorter amortisation period usually results in higher monthly payments yet less total interest paid.
Pro Tip 3/3Intangibles Consideration
In accounting, amortisation of intangible assets requires careful tracking of their value over time.
Investors should consider how a company manages its asset amortisation.
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