Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

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

Sagot :

Parrain

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.

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.