Yes it is
capitalization. Capitalization is when all unpaid interest is added to the principal balance of your loan. Capitalization increases your total amount to be repaid because you will then have to pay interest on the increased principal amount.
Given that the working capital loan continues to get renewed yearly and is not in default, and the principal can be repaid every time the borrower wants.
For loans, the primary amount is the principal, which must be repaid in addition to whatever interest is charged. Until the principal is completely paid, the loan agency will normally continue to charge interest.
The principle and interest.
13,807.50
Par Value
Interest.
An accrual bond is a fixed-interest bond which is issued at face value and repaid at the end of the maturity period along with the accrued interest.
get the difference of interest rate and monthly periodic payment
Simple interest means the interest is calculated one time on the total principal of the loan. Therefore, you would pay back $11,161.50 on this loan. However, simple interest loans are very uncommon; most loans in life have compound interest.
Loans where the interest accrues over time and then the interest plus the principal are paid are known as "bullet" loans (derived from the theory that having to pay interest plus all of the principal at once is like taking a bullet by the borrower).
what is it called when goverment note that is repaid with interest?