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New Zealand
Level 6 - NCEA Level 1

Reducing Balance Loans

Interactive practice questions

Ivan takes out a car loan for $\$24000$$24000. He is charged $8.1%$8.1% per annum interest, compounded monthly. Ivan makes repayments of $\$450$$450 at the end of each month.

Complete the values in the empty cells in the table below. Give your answers correct to the nearest cent.

Month Opening Balance Interest Repayment Closing Balance
1 $24000$24000 $162.00$162.00 $450$450 $23712.00$23712.00
2 $\editable{}$ $\editable{}$ $\editable{}$ $\editable{}$
3 $\editable{}$ $\editable{}$ $\editable{}$ $\editable{}$
Easy
7min

Kate takes out a personal loan for $\$40000$$40000. The interest on the loan is charged quarterly. Kate makes repayments of $\$900$$900 at the end of each quarter.

Easy
9min

Maximilian takes out a mortgage to purchase an investment property. A portion of his payments and balances are shown in the table below.

Easy
8min

Xanthe takes out a car loan.

Easy
6min
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Outcomes

NA6-3

Apply everyday compounding rates

91026

Apply numeric reasoning in solving problems

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