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What increases your total loan balance Interest Accrual Interest capitalism Both interest accrual interest capitalism None of the above
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26 votes
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What increases your total loan balance Interest Accrual Interest capitalism Both interest accrual interest capitalism None of the above

User Tristup
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2 Answers

16 votes
16 votes

Answer: both

Step-by-step explanation:

User Matt Moran
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2.8k points
18 votes
18 votes

Answer:

Both interest accrual and interest capitalism

Step-by-step explanation:

The total loan balance increases due to "Both interest accrual and interest capitalism"

This is because INTEREST ACCRUAL on a loan is capitalized, which implies that it will be added to the principal balance, therefore increasing the total loan balance.

Similarly, the INTEREST CAPITALISM occurred when a loan repayment period is missed, therefore, the amount missed is capitalized which in turn increases the total loan balance.

User Shawn Whinnery
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