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ScotlandApplications of MathematicsQuick questions

Finance

Quick questions on Loans, credit and APR - SQA Higher Applications of Maths

3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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A £1500\pounds 1500 loan is charged 2%2\% per month and £400\pounds 400 is repaid monthly. Find the balance after one payment. [2 marks]
What is q2?
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A credit card charges 1.3%1.3\% per month. Find its effective annual rate. [2 marks]
What is q3?
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Two loans cost the same per month but one runs for 33 years and the other for 55 years. Which is likely to cost more in total, and why? [2 marks]

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