check your knowledge\nwhat increases your total loan balance?\ninterest accrual\ninterest capitalization\nbot…

check your knowledge\nwhat increases your total loan balance?\ninterest accrual\ninterest capitalization\nboth interest accrual and interest capitalization\nnone of the above

check your knowledge\nwhat increases your total loan balance?\ninterest accrual\ninterest capitalization\nboth interest accrual and interest capitalization\nnone of the above

Answer

Brief Explanations:

Interest accrual is the accumulation of interest over time on a loan, which adds to the balance. Interest capitalization occurs when unpaid interest is added to the principal amount of the loan, also increasing the total loan balance.

Answer:

C. Both interest accrual and interest capitalization