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
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