Question

A man borrows $200 000 to buy a sports car. He is charged a simple interest of

2.88% per annum. If the loan is for 7 years, find the
(a) interest payable
(b) amount of each repayment if the total sum is to repaid in 84 equal
installments.

Answer 1

See explanation

Explanation:

a) 200,000 x .0288 x 7 = 40,320 interest

b) 240,320/84 = $2860.95