Lydia works at a medical facility in which all employees are required to wear white shoes. lydia does not agree with this rule.
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Interest capitalization is defined as the unpaid interest when added to the principal amount of the loan. It increases the overall cost of the loan.
Bianca will have to pay $13.43 monthly to avoid interest capitalization.
Given that:
Principal value of loan = $2600
Maturity Time = 10 years = 120 months
Interest rate = 6.2% = 0.062
Now, to find the amount of payment by using the formula:
Total payment that is to be paid in 1 year:
Thus, the payment that Bianca has to pay is $13.43.
To know more about interest capitalization, refer to the following link:
The statement that indicates the impact of the Globalization on the African farming community is use of modern methods of farming increased the crop production of the people.
<h3>What is Globalization?</h3>Globalization is a term which refers to the interconnection and interaction of the economy with that of the world's economy. It involves the exchange of the knowledge, trade, technology and even people.
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The African farmers faced many challenges but still they are graced with a very appropriate soil type, which has been aided by modern irrigation practices, fertilizers.
Many of the international aggro-processing company that set up factory near the village in the hopes of obtaining easy and cheap labor. As a result of these factors, people's crop production has increased dramatically.
Learn more about farming here:
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