Answer:
Both interest accrual and interest capitalism
Step-by-step explanation:
The total loan balance increases due to "Both interest accrual and interest capitalism"
This is because INTEREST ACCRUAL on a loan is capitalized, which implies that it will be added to the principal balance, therefore increasing the total loan balance.
Similarly, the INTEREST CAPITALISM occurred when a loan repayment period is missed, therefore, the amount missed is capitalized which in turn increases the total loan balance.