Types of Interest

The interest rate charged on overdue payments

The rate at which a commercial bank charges all its customers

The rate of interest set by banks for their best customers (correct)

The interest rate offered to new customers by a bank

Applied to overdue payments with an additional penalty

Lower than the lender's standard variable rate, offered for a specific period as a promotional deal (correct)

Fixed throughout the loan term, offered to high-risk customers

Higher than the lender's standard variable rate, applied to long-term loans

Only applicable to long-term loans such as mortgages

Charged at different rates based on the customer's credit score

Charged only on the initial amount borrowed, not on the accumulated interest (correct)

Applied on both the principal amount and any accumulated interest

<p>Charged on the principal amount and any accumulated interest, with interest added to principal and then charged again</p> Signup and view all the answers

<p>The total cost of a loan including the interest rate and any related fees, displayed as a percentage and charged annually</p> Signup and view all the answers