Can interest be charged on interest?

In: Small Business Loans

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Interest is usually not charged on interest and is called capitalizing interest. On some occassions banks may roll interest on a note and thus charge interest on the interest, but this is not advisable and is only done in certain situations that demand that it be done.

First answer by Killian. Last edit by Oklahombre. Contributor trust: 16 [recommend contributor]. Question popularity: 44 [recommend question]

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Interest (in finance)
With interest (Idiom)

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How is interest charged? How much interest is allowed to be charged? In maryland is it against the law to charge interest on the interest already charged?