Reducing-Balance Loans (HSC SSCE Mathematics Standard): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
How is interest calculated in a reducing-balance loan?
How is interest calculated in a reducing-balance loan?
On the current balance owed
What is the key advantage of a reducing-balance loan?
What is the key advantage of a reducing-balance loan?
You pay less interest over time
What does 'Principal' mean in loan terms?
What does 'Principal' mean in loan terms?
The original amount borrowed
Which formula calculates the total amount to be paid on a loan?
Which formula calculates the total amount to be paid on a loan?
How do you calculate the interest paid on a loan?
How do you calculate the interest paid on a loan?
For 280,000 USD at per 1,000 USD, what is the monthly payment?
For 280,000 USD at per 1,000 USD, what is the monthly payment?
2,340.80 USD
How much is saved repaying 280,000 USD over 15 years instead of 20 at 8%?
How much is saved repaying 280,000 USD over 15 years instead of 20 at 8%?
79,968 USD
Which of these is NOT mentioned as a loan fee?
Which of these is NOT mentioned as a loan fee?
Insurance premium fee
What happens when you double the monthly payment on a reducing-balance loan?
What happens when you double the monthly payment on a reducing-balance loan?
Repayment rate more than triples
For a 50,000 USD loan at 10%, how much interest is saved paying 1,000 vs 500 USD/month?
For a 50,000 USD loan at 10%, how much interest is saved paying 1,000 vs 500 USD/month?
42,500 USD