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v1 Financial Maths, STD2 F1 2024 HSC 13 MC

Alicia takes out a loan of $7500. Simple interest is charged on the loan.

The loan and the interest charged will be repaid by making monthly repayments of $250 over 3 years.

What simple interest rate per annum, to the nearest percent, is charged on the loan?

  1. 7%
  2. 9%
  3. 12%
  4. 15%
Show Answers Only

\(A\)

Show Worked Solution

\(\text{Number of repayments} = 3 \times 12 = 36\)

\(\text{Total repayments} = 36 \times 250 = \$9000\)

\(\text{Interest paid} = 9000 – 7500 = \$1500\)

  \(I\) \(= Prn\)
  \(1500\) \(= 7500 \times r \times 3\)
  \(r\) \(= \dfrac{1500}{7500 \times 3} = 0.0666…\)
    \(= 6.67\% \approx 7\%\)

 
\(\Rightarrow A\)

♦ Mean mark 39%.