SECTION D: LOAN REPAYMENT

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The table below shows the monthly repayments, in pounds, for loans of different amounts and over different repayment periods.

Loan amount Repayment Period
12 months 24 months 36 months 48 months
£2500£230.79£126.72£91.97£76.29
£3000£276.86£152.08£110.32£89.88
£3250£299.90£164.74£119.48£96.69
£3500£322.93£177.39£128.67£103.51
£4000£369.02£202.71£147.01£119.82

Question

Doug wants to buy a top of the range mountain bike. He decides to borrow £ 4000 and to repay the loan over 36 months.

Write down the monthly repayment that Doug will make.

£   

By finding the total repayments that Doug makes to repay the loan, calculate the total interest which he will be charged.

£   

Express the total interest as a percentage of the amount borrowed.

%