capitalized interest should not be considered as part of interest in the times interest earned computation. true false

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01-12-2022
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capitalized interest should not be considered as part of interest in the times interest earned computation. true false

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DarfishaShaikhidn DarfishaShaikhidn · Answer 1 · 2022-12-05T12:31:12-05:00

False, capitalized interest should not be included in the calculation of interest times interest earned.

What does the term "capitalizing interest" mean?

Capitalization is the process of increasing your loan's main balance by the amount of unpaid interest. When payments are put off during intervals of deferment or moratorium and missed interest is capitalized, the original balance of a loan rises.

When does accruing interest become capitalized interest?

Interest begins to accrue (increase) on your loan the moment it is delivered . Our Unpaid Extra may capitalize at specific times—when your separation or waiting period expires, or at the conclusion of forbearance or deferment. That implies that it is added to the current principal of your loan.

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What does the term "capitalizing interest" mean?

When does accruing interest become capitalized interest?

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