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

Andy wants to buy a new motorbike. He decides to borrow £ 2500 and to repay the loan over 12 months.

Write down the monthly repayment that Andy will make.

£   

By finding the total repayments that Andy 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.

%