Pronunciation: [ɐmˈɔːta͡ɪzd] (IPA) 
The word "amortised" is pronounced /əˈmɔːtaɪzd/ with emphasis on the second syllable. The "a" in the second syllable is pronounced as "o" and the "o" in the first syllable is pronounced as "uh". The spelling of this word includes the letter "m" followed by the letters "o", "r", "t", "i", "s", and "e", with a silent "e" at the end. "Amortised" is a past tense verb that refers to the gradual payment of a debt over time.
Amortised is a term that is primarily used in the field of finance and accounting. It refers to the process of gradually paying off or reducing a debt or liability over a specific period of time through scheduled payments.
In the context of a loan or mortgage, amortisation involves the systematic repayment of the principal amount along with the interest charged by the lender. This is typically done in regular installments, which are structured to ensure that the loan is fully repaid by the end of a specified term. The goal of amortisation is to evenly distribute the repayment burden over the loan period, making it more manageable for the borrower.
Amortisation can also be applied to the allocation of costs or expenses over a specific timeframe. In this sense, it involves spreading out the initial cost of an asset or investment over its useful life. For example, if a company purchases a piece of machinery, the cost of the machinery may be amortised over its estimated useful life. This allows the company to reflect the cost of the asset in its financial statements over a period of time, rather than recording the entire expense in one go.
Overall, amortisation is a process that helps to systematically reduce or allocate liabilities or expenses over a certain period, making it easier for individuals or businesses to manage financial obligations.
The word "amortised" derives from the Latin term "ad mortem" which means "to death". In Latin, "ad mortem" was commonly used in the context of loans or debts, indicating that something would be paid off until it reaches its end or "death". Over time, this Latin expression was anglicized and transformed into the term "amortize" in English, which refers to the gradual reduction or payment of a debt over a specified period. The word "amortise" has then evolved into its past participle form, "amortised".
