🪙 Capitalised interest
The capitalized interest is the amount of interest that is added to the principal balance of a loan. This means that the borrower will have to pay interest on the interest that has been added to the loan. Capitalized interest is often used to calculate the minimum monthly payment on a loan.
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Capitalise interest and fees
Capitalise interest and fees means adding the interest on a loan to the principal of the loan, so the borrower pays interest on the interest. This can make the loan more expensive, but also easier to repay.
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