Concept in Definition ABC

Coming from the field of economy, the term amortize is a term that is used with several meanings but that usually means the refund or recovery by which an investment can be recovered, for example amortizing the expense of furniture selling handicrafts would mean that what was spent on the furniture will be recovered after Put in March a economic activity that will give benefits and profits.

The idea of ​​amortizing or amortization it is used in the economic area with two main meanings. The first is the one that has just been mentioned and that represents the way through which an investment or an expense is recovered. Also for this meaning the term amortize is used when speaking of a debt that can be had and the amortization will mean the economic means by which the indebted person will make to return that money. Amortization in this sense is what one does, neither more nor less, when buying a material or non-material good from credit to pay later. That momentary debt can be amortized in many different ways, for example, paying everything in a single installment, paying in installments, paying in installments that will have an interest, paying with a

discount progressive, etc.

The second The meaning that the word amortize may have is when it refers to the loss of value that a material or non-material element may suffer over time. In this case, the price or value that an item had when it first went on the market will go down or amortize as newer and more modern products enter. For example, when an edible good such as milk costs two dollars when it goes to market, time and thus approach its expiration date, that value can be amortized and become half.

Issues in Amortize