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What is amortization?

Amorization is similar to depreciation except that amortization refers to intangible assets whereas depreciation refers to tangible ones. Amortization is essentially the paying off of debt in several payments typically pre-scheduled or arranged or a specific period of time. This is the repayment of a loan with a schedule of due dates set in place and the value of things at each moment.

Other Financial Terms and Vocabulary

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