Interest-Only Loans (VCE SSCE General Mathematics): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
In an interest-only loan, what happens to the amount owed over time?
In an interest-only loan, what happens to the amount owed over time?
It stays exactly the same
What is a common use for interest-only loans?
What is a common use for interest-only loans?
Investment purposes like property/shares
What happens when your payment exactly matches the interest charged?
What happens when your payment exactly matches the interest charged?
The loan balance stays constant
If payments are less than the interest charged, what happens to the loan balance?
If payments are less than the interest charged, what happens to the loan balance?
It increases over time
If payments are greater than the interest charged, what happens to the loan balance?
If payments are greater than the interest charged, what happens to the loan balance?
It decreases
Calculate monthly payment for 50,000 USD at 9% p.a., monthly compounding (interest-only).
Calculate monthly payment for 50,000 USD at 9% p.a., monthly compounding (interest-only).
375 USD
A loan at 6% p.a. (monthly) needs 440 USD monthly payments. Find the principal (interest-only).
A loan at 6% p.a. (monthly) needs 440 USD monthly payments. Find the principal (interest-only).
88,000 USD
A 1,000,000 USD loan needs 4000 USD quarterly. Find annual rate (interest-only).
A 1,000,000 USD loan needs 4000 USD quarterly. Find annual rate (interest-only).
1.6%
In the formula , what does represent?
In the formula , what does represent?
Number of compounding periods per year
When using a finance solver for interest-only loans, what value should be?
When using a finance solver for interest-only loans, what value should be?
1