Coming from the field of economics , the term amortize is a term that is used with several meanings but that normally means the reimbursement or recovery through which an investment can be recovered, for example amortizing the expense of furniture by selling handicrafts would mean that that that was spent on furniture will be recovered by starting an economic activity that will give benefits and profits.
The idea of amortizing or amortization is used in the economic area with two main meanings. The first is the one that has just been mentioned and that represents the way through which an investment or an expense is recovered. Also for this meaning the term amortize is used when talking about a debt that can be had and amortize will mean the economic means by which the indebted person will make to return that money. Amortization in this sense is what one does, neither more nor less, when buying a material or non-material good on creditto pay later. That momentary debt can be amortized in many different ways, for example, paying everything in a single installment, paying in installments, paying in installments that will have an interest, paying with a progressive discount , etc.
The second meaning that the word amortize can have is when it refers to the loss of value that a material or non-material element may suffer over time. In this case, the price or value that an item had when it first went on the market will go down or amortize as newer and more modern products enter. For example, when an edible good such as milk costs two dollars when it goes to market, as time passes and its expiration date approaches, that value can be amortized and become half.