Posted by **INDIANA** on Thursday, May 24, 2012 at 11:51am.

(a)A loan of 12 000 was borrowed from a bank at 14% per annum

Calculate

(i) The interest on the loan at the end of the first year

(ii) The total amount owing at the end of the first year

A repayment of $ 7 800 was made at the start of the second year.

Calculate

(iii) the amount still outstanding at the start of the second year

(iv) the interest on the outstanding amount at the end of the second year

- Mathematics -
**Ms. Sue**, Thursday, May 24, 2012 at 11:55am
I'll do the first two.

(i)

12,000 * 0.14 = 1,680

(ii)

12,000 + 1,680 = 13,680

I'll be glad to check your answers for the other two.

- Mathematics -
**INDIANA**, Thursday, May 24, 2012 at 12:02pm
(iii) 13,680 - 7,800 = 5,880 still outstanding in the second year.

I am not sure how to work out the last one.

- Mathematics -
**Ms. Sue**, Thursday, May 24, 2012 at 12:20pm
(iv)

5,880 * 0,14 =

- Mathematics -
**rue**, Wednesday, May 21, 2014 at 11:07am
308

## Answer This Question

## Related Questions

- Mathematics - A loan of 12,000 was borrowed from a bank at 14% per annum. ...
- Business Finance - Assume a bank loan requires a interest payment of $85 per ...
- Mathematics of Finance - Richard borrowed 170000 dollars from his bank to help ...
- Mathematics - Jake's car needs repairs but he is short of cash. A payday loan ...
- Finance - You just borrowed $15,000 from a bank. If you pay $4,000 at the end of...
- math - A man borrows $50,000 towards the cost of a house. Compound interest is ...
- college math - a math student borrowed $9300.00 from his local bank at 7% ...
- Math - hollis is paying off 2 student loans. One loan charges 7% interest, per ...
- math - gail borrowed $3600 from a bank to buy a washing machine she pays back ...
- business mathematics - find the total amount due on a loan of N80,000.00 at ...

More Related Questions