Ask Question
BusinessBusiness
13 September, 06:04

Why is it a good idea to make interest payments for those loans that accrue interest during a grace period?

+2
Answers (1)
  1. 13 September, 06:33
    0
    Because during the grace period interest will accrue and it is added to the principal which also accrues interest, increasing your total debt.

    Explanation:

    A grace period refers to a period of time in which you are not obligated to make payments. However, some loans provide a grace period but interest accrue which increases the amount you owe. Because of that, it is a good idea to make interest payments on those loans to save money by avoiding that the interest is added to your principal raising your total debt.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Why is it a good idea to make interest payments for those loans that accrue interest during a grace period? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If the sum of the debit column equals the sum of the credit column in a trial balance it becomes
Answers (1)
Which factor is responsible for the emergence of industrialized societies? a) the development of the computer b) the creation of surplus food and job specialization c) the use of energy sources other than humans and animals d) the use of currency as
Answers (1)
Why do we have food price inflation?
Answers (1)
To avoid losing any data on his computer, tom consistently backs up his computer data to a second hard drive. using operant conditioning terms, tom's behavior of backing up his data to a second hard drive is an example of:
Answers (1)
You've just met with a new client. They're a small business owner who has been managing their books with a number of spreadsheets up to now, but you have convinced them that QuickBooks Online will make it easier to run their business.
Answers (1)
New Questions in Business
te Computer Solutions provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 300 customers and earned $ 70 comma 000 in revenue.
Answers (1)
In which of the following situations is the taxpayer not required to file a 2019 income tax return? a. When the taxpayer is a 69-year-old widow (spouse died 3 years ago) with wages of $16,500 and no dependents. b.
Answers (1)
Skysong Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.
Answers (1)
Which of the following perspectives is least useful for evaluating solutions?
Answers (2)
Oh no! someone stole your credit card and charged $2,500 worth of purchases before you even knew the card was missing. how much of the unauthorized charges can you be required to pay?
Answers (1)
Home » Business » Why is it a good idea to make interest payments for those loans that accrue interest during a grace period?
Sign Up Forgot Password?