A capitalized loan means that interest is added to the original principal: A False B True

## Step 1<br />A capitalized loan is a type of loan where the interest that accumulates during a deferment or forbearance period is added to the principal balance of the loan. This means that the interest is not paid off during the deferment or forbearance period, but instead is added to the principal balance.<br />## Step 2<br />This addition of interest to the principal balance increases the total amount that the borrower owes. This is because the borrower will now have to pay off not only the original principal amount but also the added interest.<br />## Step 3<br />Therefore, the statement that a capitalized loan means that interest is added to the original principal is true.