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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.
False
Simple interest is often used for long-term loans such as mortgages.
False
Compound interest is charged on the principal amount as well as any accumulated interest.
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The annual percentage rate includes the interest rate and any associated fees.
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Compound interest is only charged on the principal amount, not on any accumulated interest.
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Simple interest is often used for short-term loans, such as personal loans or car loans.
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Discounted interest rate is higher than the lender's standard variable rate.
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The annual percentage rate includes only the interest rate, not any associated fees.
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Prime interest type is the rate of interest set by banks for their worst customers.
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Fixed interest type remains the same throughout the fixed rate term, often 2-5 years.
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Variable interest type changes over time.
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Annual Percentage Rate includes only the interest rate, not any associated fees.
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Compound interest is charged on the principal amount as well as any accumulated interest.
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Discounted interest rate is lower than the lender's standard variable rate.
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