Types of Interest

• A discounted interest rate lower than the lender's standard variable rate
• A type of interest charged only on the initial amount of money borrowed
• The interest rate charged on the principal amount and any accumulated interest
• The rate of interest set by banks for their best customers (correct)

• For long-term investments and savings accounts
• For encouraging customers to borrow money from the bank
• For a specific period of time as a promotional deal
• For short-term loans such as personal loans, car loans, and mortgages (correct)

• A type of interest set by banks for their best customers
• Lower than a lender's standard variable rate
• Charged on the principal amount and any accumulated interest (correct)
• A type of interest charged only on the initial amount of money borrowed

<p>To encourage customers to borrow money or take out a loan with the bank (A)</p> Signup and view all the answers

<p>Interest charged only on the principal or initial amount borrowed (B)</p> Signup and view all the answers