Financial math: what does amortization mean?

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Tutoring math, definitions are needed. The tutor shares the definition of amortization.

Amortization schedules and amortization functions are commonly encountered in financial math. What does amortization mean?

amortization: the separation of a loan payment into two amounts:

  1. the payment against principal;
  2. the interest

Source:

Hewlett-Packard Business Calculator Owner’s Manual. Corvallis: Hewlett-Packard, 1988.

Jack of Oracle Tutoring by Jack and Diane, Campbell River, BC.

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