topic badge

7.04 Interest rates

Interactive practice questions

Susana takes out a car loan.

a

The last few months of Susana's repayments are shown below.

Month Opening Balance Interest Repayment Closing Balance
$69$69 $868.48$868.48 $4.34$4.34 $250$250 $622.82$622.82
$70$70 $622.82$622.82 $3.11$3.11 $250$250 $375.93$375.93
$71$71 $375.93$375.93 $1.88$1.88 $250$250 $127.81$127.81

Calculate the monthly interest rate charged on this loan.

Give your answer as a percentage to the nearest one decimal place.

b

Complete the next row of the table, giving your answers correct to two decimal places.

Month Opening Balance Interest Repayment Closing Balance
$69$69 $868.48$868.48 $4.34$4.34 $250$250 $622.82$622.82
$70$70 $622.82$622.82 $3.11$3.11 $250$250 $375.93$375.93
$71$71 $375.93$375.93 $1.88$1.88 $250$250 $127.81$127.81
$72$72 $\editable{}$ $\editable{}$ $\editable{}$ $\editable{}$
c

How many years did it take for her to pay off the loan?

d

Calculate her total repayments.

e

If her loan was for $\$15000$$15000, calculate the total interest paid on the loan.

Give your answer to the nearest cent.

Medium
12min

Mr. and Mrs. Maximilian have a mortgage.

Medium
9min

Judy takes out a loan of $\$800$$800 to pay for an online course. Simple interest is calculated at $7%$7% per year, charged monthly.

If she repays the loan in $6$6 months, how much interest does she pay in total?

Medium
1min

Jenny takes out a loan to purchase a property. The following image depicts the change of the loan over time. Which of the following scenarios could it depict?

Medium
< 1min
Sign up to access Practice Questions
Get full access to our content with a Mathspace account

Outcomes

VCMNA304

Solve problems involving simple interest.

What is Mathspace

About Mathspace