Amortization is an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time. Concerning a loan, amortization focuses on spreading out loan payments over time. When applied to an asset, amortization is similar to depreciation.
Merriam-Webster Online Dictionaryamortization (noun)
the act or process of - amortizing
the result of amortizing
Tags: accounting, Amortization, depreciation