Short Answer 
Calculate Olivia’s total interest on her loan using the compound interest formula, yielding a total amount of $27,936.40 after ten years. The difference between this total and her original loan of $13,100 is $14,836.40, indicating the additional interest that has compounded during this period.
Calculate Compound Interest
To determine the total interest capitalized on Olivia’s loan, use the compound interest formula: A = P(1 + r/n)^(nt). Here, P represents the original loan amount, r is the interest rate in decimal form, n is the number of times interest compounds each year, and t is the total duration in years. For Olivia’s case, plug in the values: loan amount of $13,100, interest rate of 7.6%, compounded monthly over 10 years.
Calculate the Total Amount Accrued
Using the formula from the first step, calculate the accrued amount A. For Olivia’s loan, this becomes: A = 13100(1 + 0.076/12)^(12*10). This results in a total of $27,936.40 after ten years including interest. This amount represents what she’ll owe after the interest capitalization period ends.
Determine the Difference
To find the difference between the capitalized interest and the minimum payment required to avoid capitalization, subtract the original loan amount from the total accrued amount. Thus, $27,936.40 – $13,100 gives $14,836.40. This figure indicates how much more the interest capitalized is compared to the payment Olivia could make to prevent it from accruing.