Posted by INDIANA on .
(a)A loan of 12 000 was borrowed from a bank at 14% per annum
(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.
(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
I'll do the first two.
12,000 * 0.14 = 1,680
12,000 + 1,680 = 13,680
I'll be glad to check your answers for the other two.
(iii) 13,680 - 7,800 = 5,880 still outstanding in the second year.
I am not sure how to work out the last one.
5,880 * 0,14 =