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Questions and Answers
Prime interest type is the rate of interest set by banks for their best customers.
Prime interest type is the rate of interest set by banks for their best customers.
True
Discounted interest rate is higher than the lender's standard variable rate.
Discounted interest rate is higher than the lender's standard variable rate.
False
Simple interest is often used for long-term loans such as mortgages.
Simple interest is often used for long-term loans such as mortgages.
False
Compound interest is charged only on the principal amount, not on any accumulated interest.
Compound interest is charged only on the principal amount, not on any accumulated interest.
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The annual percentage rate (APR) includes the interest rate and any associated fees.
The annual percentage rate (APR) includes the interest rate and any associated fees.
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