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 amount to borrow

Using the Loan Concepts knowledge point

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Calculate interest for 1-year loan

Using the Simple Interest Formula and Simple Interest Calculation knowledge points

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Calculate interest for 2-year loan

Using the Simple Interest Formula and Simple Interest Calculation knowledge points

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Calculate interest for 3-year loan

Using the Simple Interest Formula and Simple Interest Calculation knowledge points

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Answer:

Question 4

You will need to borrow \$4,399.00.

Question 5

a. The simple interest charged on each loan is:
i. 1-year loan: \$1,449.47
ii. 2-year loan: \$2,898.94
iii. 3-year loan: \$4,348.41