Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

What increases your total loan balance interest accrual or interest capitalization?

Sagot :

When it comes to the calculation of a loan balance, the factor that increases this amount is the interest capitalization.

Interest capitalization:

  • Is unpaid interest that has accumulated.
  • Is added to the loan principal.

As a result of this unpaid interest being added to the loan balance, the loan will increase in size and the interest will then be calculated using this new balance thereby increasing the interest payments as well.

In conclusion, the answer is interest capitalization.

Find out more on interest capitalization at https://brainly.com/question/16340851.

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.