Question 1
FinanceJill borrows £5650 from a bank.
The annual effective rate of interest on the loan is 9%.
Jill makes level monthly repayments of £186.01 at the end of each month.
Complete the following loan schedule for Jill's loan to show the loan outstanding at the end of month 2.
| Time (months) | Repayment (£) | Interest content of repayment (£) | Capital content of repayment (£) | Loan outstanding (£) |
|---|---|---|---|---|
| 0 | 5650 | |||
| 1 | 186.01 | |||
| 2 | 186.01 |
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Monthly interest rate: (or )
| Time (months) | Repayment (£) | Interest content of repayment (£) | Capital content of repayment (£) | Loan outstanding (£) |
|---|---|---|---|---|
| 0 | 5650 | |||
| 1 | 186.01 | 40.72 | 145.29 | 5504.71 |
| 2 | 186.01 | 39.67 | 146.34 | 5358.37 |
