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 you owe
Why do reducing-balance loans result in paying less interest over time?
Why do reducing-balance loans result in paying less interest over time?
Balance decreases, so interest charged decreases
Monthly payment is 1500 USD for 10 years. What is the total to be paid?
Monthly payment is 1500 USD for 10 years. What is the total to be paid?
180,000 USD
If total paid is 445,536 USD and principal is 200,000 USD, what is the interest?
If total paid is 445,536 USD and principal is 200,000 USD, what is the interest?
245,536 USD
What does 'principal' mean in loan terminology?
What does 'principal' mean in loan terminology?
The original amount borrowed
A table shows 8.36 USD per 1,000 USD borrowed. What is monthly payment for 280,000 USD?
A table shows 8.36 USD per 1,000 USD borrowed. What is monthly payment for 280,000 USD?
2,340.80 USD
What happens with shorter loan terms compared to longer terms?
What happens with shorter loan terms compared to longer terms?
Higher monthly payments but less total interest
Which statement about loan fees is correct?
Which statement about loan fees is correct?
Many fees are negotiable
For a 50,000 USD loan at 10% p.a., doubling payment from 500 to 1,000 USD/month saves how much?
For a 50,000 USD loan at 10% p.a., doubling payment from 500 to 1,000 USD/month saves how much?
42,500 USD in interest
Why do reducing-balance loan graphs curve downward rather than show straight lines?
Why do reducing-balance loan graphs curve downward rather than show straight lines?
As balance decreases, less interest charged