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Amortize

/ˈæm·ər·taɪz/verb
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To gradually reduce or write off the cost of an asset over a specific period through regular payments or allocations. This financial practice helps businesses and individuals spread out expenses for better budgeting and tax purposes, making long-term investments more manageable in today's economy.

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Did you know?

Amortization isn't just for big businesses; it's estimated that over 60% of American homeowners use amortized mortgages, which can save them an average of $100,000 in interest over 30 years by paying down principal early. This simple financial tool, rooted in ancient debt practices, has helped millions build wealth without realizing its historical ties to Roman accounting methods.

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