What is the meaning of "amortize"?

The term "amortize" refers specifically to the process of gradually reducing a debt over time through a series of installment payments. This often involves making regular payments that include both principal and interest, ultimately leading to the complete payoff of the debt at the end of the loan term. The concept is frequently applied in financial contexts, such as mortgages or car loans, where borrowers pay back the amount borrowed over a designated period.

Understanding this definition clarifies why other choices do not align with the meaning of "amortize." While some options might involve aspects of debt management or finances, they do not accurately describe the gradual reduction of a debt through structured payments.