Types of Interest

10 Questions

Match the following types of interest with their descriptions:

Fixed interest type = Remains the same throughout the fixed rate term Variable interest type = Changes over time Annual Percentage Rate = Total cost of a loan, including interest rate and associated fees Prime interest type = No description provided in the text

Match the following terms with their Arabic translations:

Types of Interest = ‫أنواع ا لفوائد‬ Fixed interest type = ‫ن وع ا لفائدة ا لثابتة‬ Variable interest type = ‫ن وع ا لفائدة ا لمتغير‬ Annual Percentage Rate = ‫م ع دلا لنسبة ا لمئوية ا لسنوي‬

Match the following terms with their definitions:

Interest = Cost of borrowing money Compound interest type = No definition provided in the text Discounted interest type = No definition provided in the text Simple interest type = No definition provided in the text

Match the following descriptions with their related types of interest:

Total cost of a loan, including both the interest rate and any other associated fees. = Annual Percentage Rate Remains the same throughout the fixed rate term, often 2-5 years. = Fixed interest type Changes over time. = Variable interest type No description provided in the text. = Prime interest type

Match the following terms with their durations for fixed interest type:

2-5 years = ‫إلى سنوات‬ No duration provided in the text = Compound interest type

Match the following types of interest with their descriptions:

Prime interest type = Set by banks for their best customers Discounted interest type = Lower than a lender's standard variable rate, offered for a specific period as a promotional deal Simple interest type = Charged only on the principal amount of money borrowed Compound interest type = Charged on the principal amount and any accumulated interest, added to the principal and charged again

Match the following terms with their meanings:

Annual Percentage Rate (APR) = Total cost of a loan, including interest rate and any associated fees, displayed as a percentage Client-side scripting = Scripting language used for web applications Variable interest rate = Rate that can change over time based on market conditions Incentive = Offered to encourage customers to borrow money or take out a loan

Match the following loan types with their typical usage:

Personal loan = Often used for short-term borrowing, such as for personal expenses or purchases Mortgages = Long-term loans used for purchasing property or real estate Car loan = Short-term loan for purchasing a vehicle Commercial loan = For large, profitable corporations, often financially strong customers of a bank

Match the following descriptions with their respective loan types:

Charged on the initial amount borrowed = Simple interest type Charged on principal amount and any accumulated interest = Compound interest type Displayed as a percentage and charged annually = Annual Percentage Rate (APR) Lower than standard variable rate, offered for a specific period as a promotional deal = Discounted interest type

Match the following financial terms with their explanations:

Promotional deal = Specific period offer to encourage customer borrowing or loan acquisition Financially strong customers = Best customers of a bank, often large and profitable corporations Principal amount = Initial amount of money borrowed on which interest is calculated Accumulated interest = Interest that has been added to the principal amount and then charged again

Learn about the common types of interest, including fixed interest, variable interest, annual percentage rate, prime interest, discounted interest, simple interest, and compound interest.