Question

section two: calculating your first loan

you would like to purchase the following drone.

matrice 350 rtk
aud $12,399.00

however, you only have $8000 in savings and will need to borrow the remaining amount.

1. how much will you need to borrow?

1. the finance company charges 32.95% p.a. on loans for drones.

a. how much is the simple interest will be charged on a:
i. 1-year loan?
ii. 2-year loan?
iii. 3-year loan?

Explanation:

Calculate the borrowing amount

Using the Loan Concepts knowledge point

$$
LATEXBLOCK0
$$

Calculate 1-year simple interest

Using the Interest Types knowledge point

$$
LATEXBLOCK1
$$

Calculate 2-year simple interest

Using the Interest Types knowledge point

$$
LATEXBLOCK2
$$

Calculate 3-year simple interest

Using the Interest Types knowledge point

$$
LATEXBLOCK3
$$

Answer:

Question 4

You will need to borrow:

$$\$4,399.00$$

Question 5

The simple interest charged is:
a.
i. For a 1-year loan:

$$\$1,449.47$$

ii. For a 2-year loan:

$$\$2,898.94$$

iii. For a 3-year loan:

$$\$4,348.41$$