His is a formula you can use to work the total repayment (including the original loan) A=P(1+RT100)
where P is the initial loan, R is the percentage rate of interest, T is the number of payments and A is the total amount paid back (initial loan + interest).
A Aaron takes out a loan of £500 at 2% per month for 6 months.
In this case, P=500, R=2 and T=6.
Use the formula to work out the total amount he pays back.
B Work out the total amount paid back on a loan of £250 at 1.7% monthly interest for a year.
C Work out the total amount paid back on a loan of £6800 at 14.5% annual interest for four years.
D Max took out a loan. He made interest repayments of 2.4% each month.
After 42 months he repaid the original loan.
Show that his total repayment was just over twice the original loan.
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