George borrows £8000 the simple interest rate is 9.5% p.a. Calculate her monthly repayment if she takes the loan out for 2 years
Sorry for being late in answering your question:
1- The monthly payment at 9.50% compounded annually would be =365.88 pounds
2-The monthly payment at 9.50% compounded monthly would be =367.32 pounds
Remember, once you are asked to make monthly payments, the interest rate is no longer "simple", but compounded.
