SECTION D: LOAN REPAYMENT

Firm Foundation Credit Services

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

Frank wants to buy an ostrich farm. He decides to borrow £ 3500 and to repay the loan over 24 months.

Write down the monthly repayment that Frank will make.

£   

By finding the total repayments that Frank 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.

%