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7.04 Loans

Interactive practice questions

Iain takes out a loan to purchase a jetski. He makes $15$15 equal loan repayments of $\$5239$$5239. The interest of $8%$8% is compounded annually.

What is the total loan amount?

Easy
1min

Dylan takes out a loan to purchase a property. He makes equal monthly loan repayments of $\$4600$$4600 over $27$27 years to pay it off. The interest of $8%$8% is compounded annually.

Easy
1min

Gwen takes out a loan to purchase a surround sound system. She makes $11$11 equal loan repayments. The total loan amount paid is $\$6600$$6600.

Easy
< 1min

Lisa takes out a loan to purchase a small boat. She makes equal loan repayments monthly over $6$6 years. The total loan amount paid is $\$55800$$55800. The interest of $8.9%$8.9% is compounded annually.

Easy
2min
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Outcomes

4.3.2.1

understand that reducing balance loans are compound interest loans with periodic repayments

4.3.2.2

use technology (online calculator) to model a reducing balance loan

4.3.2.3

use technology (spreadsheet) to model a reducing balance loan [complex]

4.3.2.4

use technology (online calculator) to investigate the effect of the interest rate and repayment amount on the time taken to repay a loan

4.3.2.5

use technology (spreadsheet) to investigate the effect of the interest rate and repayment amount on the time taken to repay a loan [complex]

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