Amortization, the gradual repayment of a debt or redemption of securities by means of periodic payments; also the process of writing off an asset over a period of years (usually its expected working life).
The 'sinking fund' method of amortizing an asset, repaying a loan or recovering an investment (e.g. a leasehold interest in a property for a given number of years) consists of setting aside regular (usually annual) instalments to accumulate at compound interest to the required sum by the end of the period. I
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