capitalized interest

Definition of "capitalized interest"
  1. Interest that accrues on a loan and is subsequently added to the principal amount, leading to the borrower paying interest on this increased principal
How to use "capitalized interest" in a sentence
  1. A large portion of his student loan debt was a result of capitalized interest.
  2. The capitalized interest on her mortgage increased her monthly payments.
  3. To avoid capitalized interest, he aimed to pay off his loan quicker.
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