Sean wants to go on holiday. He is going to get a loan of £ 720 to help pay for the holiday. Sean will have to pay back the £ 720 plus interest of 15 %. He will pay this back in 12 equal monthly installments. How much money will Sean pay back each month?

Sean is lent £720. He has to pay back all of this, plus the extra 15% interest. So first you have to find 15% of £720:

10% is £72,

5% is £36,

therefore 15% is £72 + £36 = £108.

The total amount he has to pay back over 12 months is £720 + £108 = £828.

The amount he has to pay per month is £828/12 = £69