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

Sagot :

Parrainidn

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.

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