What Are Three Reasons That Banks Charge Interest on Loans

question 39

Essay

What are three reasons that banks charge interest on loans?

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Definitions:

Repeat Sales

Subsequent purchases made by customers who return to buy the same product or service after their initial purchase.

Follow-up

The process of maintaining contact with customers or clients after a transaction to ensure satisfaction or to continue the relationship.

New Customer

An individual or entity that purchases products or services from a business for the first time.

Administrative Costs

Expenses related to the general operation of a business, including office management, clerical work, and executive salaries, that do not directly contribute to production or sales.