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Questions and Answers
What is the prime interest type?
What is the prime interest type?
- 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)
When is simple interest often used?
When is simple interest often used?
- 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)
What is compound interest?
What is compound interest?
- 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
How is discounted interest type used as an incentive?
How is discounted interest type used as an incentive?
What does simple interest refer to?
What does simple interest refer to?
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