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Greeley [361]
2 years ago
13

Capitalization of interest is adding accrued

Business
1 answer:
Anon25 [30]2 years ago
6 0

It is true that capitalization of interest is adding accrued interest to the principal balance,  so that the interest-bearing principal balance of the loan increases.

<h3>What is interest capitalization?</h3>

This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.

Hence, Capitalization of interest is adding accrued interest to the principal balance,  so that the interest-bearing principal balance of the loan increases.

Learn more about interest capitalization here: brainly.com/question/417585

#SPJ1

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Big Dom’s Pawn Shop charges an interest rate of 27.4 percent per month on loans to its customers. Like all lenders, Big Dom must
Makovka662 [10]

Answer:

Annual percentage rate: 328.8%

effective rate: 1728%

Explanation:

APR: Annual Percentage Rate

as the month is monthly we must multiply by 12 to convert into annual

27.4 x 12 = 328.8%

<u>The effective rate will have into consideration the compounding effect:</u>

(1+r_m)^{12}  = 1 + r_e

(1+0.274)^{12}  -1 = r_e

re = 1728%

3 0
3 years ago
A(n) ------ model-building techniques where computers examine many potential solutions to a problem, iteratively modifying vario
Basile [38]

Answer:

The correct answer is genetic algorithms

Explanation:

Genetic Algorithms are adaptive methods that can be used to solve search and optimization problems. They are based on the genetic process of living organisms. Throughout the generations, populations evolve in nature according to the principles of natural selection and the survival of the strongest, postulated by Darwin (1859).

By imitating this process, Genetic Algorithms are able to create solutions for real-world problems. The evolution of these solutions towards optimal values of the problem depends to a large extent on their adequate codification.

8 0
3 years ago
What does the passage suggest about rocco corresca s economic situation during his early days in america? explain your answer
serg [7]
Rocca corresca was an immigrant that came into america when he was a little boy in 1902

in His writing, he describe that he lived in a very poor economic condition. He was forced to be a beggar only to face that all the money that he earned from begging will be taken away by his old man or the boys on his neighborhood

hope this helps
3 0
3 years ago
You sell a stock for $50.00 that was held for 10 years. You earned a return of 8%. What was the original cost of the stock?
Irina18 [472]

Answer:

Original cost of the stock = $23.16

Explanation:

Original cost of the stock = Selling price of stock / ( 1 + r )^n

Original cost of the stock = $50 / (1+8%)^10

Original cost of the stock = $50 / (1.08)^10

Original cost of the stock = $23.16

7 0
3 years ago
True or false? Most manufacturers sell directly to customers.
Grace [21]
The answer is........................... False
5 0
4 years ago
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