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 (C)</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 (A)</p> Signup and view all the answers