Interest Types Quiz

Simple interest = Charged only on the principal amount Compound interest = Charged on the principal amount and any accumulated interest Public interest = Welfare of the general public and society, not a financial interest type Financial markets = Act in the public interest and impact the financial position of the public

Short-term loans = Personal or car loans Mortgages = Long-term home loans Simple interest = Often used for short-term loans Compound interest = Can be used for mortgages

Straight commission = Agent's earnings based on commission alone Salary plus Commission = Agent's earnings based on a basic or fixed salary plus a commission Salary plus Bonus Commission = Sales agent receives a monthly salary plus a commission and/or bonus for exceeding a sales quota Graduated Commission = Total earnings based on commission rates for different levels of sales

<p>Straight commission = Agent's earnings based on commission alone Override Commission = Additional commission paid to a sales supervisor or head of department based on store sales or the sales of the representatives under the supervisor Salary plus Commission = Agent's earnings based on a basic or fixed salary plus a commission Commission = Fees charged for specific services or transactions provided to customers</p> Signup and view all the answers

<p>Fixed interest type = Remains the same throughout the fixed rate term, often 2-5 years. Variable interest type = Changes over time Annual Percentage Rate = Total cost of a loan, including both the interest rate and any other associated fees Prime interest type = Rate of interest set by banks for their best customers</p> Signup and view all the answers

<p>Discounted interest type = Lower than the a lender's standard variable rate, offered as a promotional deal Simple interest type = Interest calculated only on the initial principal Compound interest type = Interest calculated on the initial principal and also on the accumulated interest of previous periods Public interest = Interest in the welfare of the general public</p> Signup and view all the answers

<p>Fixed interest type = Remains constant throughout the fixed rate term Variable interest type = Changes as per market conditions Discounted interest type = Lower than the lender's standard variable rate, offered as a promotion Prime interest type = Set by banks for their most financially strong customers</p> Signup and view all the answers

<p>Annual Percentage Rate = Reflects the total cost of a loan, including interest rate and associated fees Simple interest type = Calculation based only on the principal amount Compound interest type = Accumulates interest on both the initial principal and the accumulated interest from previous periods Public interest = Concern for the welfare of the general public</p> Signup and view all the answers