A business is looking
to invest £5,000 in a new machine. It intends to borrow the £5,000
re...
A business is looking
to invest £5,000 in a new machine. It intends to borrow the £5,000
required from the bank and repay it over five years. The monthly repayment will be £89.50.
Interest (on loans) in %
a) 1.8%
b) 7.4%
c) 8.9%
5.1 Using the information provided, identify the correct interest (on loans) in % the business
will pay (show your workings)
Answers: 2
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