§-Quick questions
WAMathematics ApplicationsUnit 4
Quick questions on Reducing-balance loans and amortisation in WACE Mathematics Applications Unit 4
3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is wrong split of a payment?Show answer
The interest part is balance times rate; the principal part is payment minus interest, not the other way round.
What is annual rate in a monthly model?Show answer
Divide the nominal rate by the periods per year first.
What is total interest as principal times rate?Show answer
Total interest is total repaid minus the amount borrowed; it is not a single percentage of the loan.
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