If in each interval of time agreed upon in an obligation, interest is added to the principal, forming an amount on which interest will be calculated in the following interval or period of time, and so on, it is said that interest is capitalized and that the financial operation is compound interest. true or false

Q: definition and recognition criteria of liabilities

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Q: How is the interest earned on the principal amount calculated at the end of each interest period?

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Q: compound interest is only the interest you earn on your principal amount. TRUE OR FALSE.

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