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Daily Archives: January 21, 2019

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What are Interest Capitalization and compounding frequency?

AccountingBy Surendra NaikJanuary 21, 2019Leave a comment

When borrowers unable to pay interest on time, it will add to principal amount of the borrower’s loan account at regular frequency. In the other words Capitalization frequency is the addition of unpaid interest to the principal balance of your loan. That means it is added to borrower’s Current Principal and interest will now be…

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