MYTUTOR SUBJECT ANSWERS

479 views

Jill takes out a loan of £6000 to get a car. The loan has a compound interest of 3% and she takes it out for 4 years. a) How much interest has Jill accrued after 2 years? b) What is the total amount to be paid after 4 years?

There are 3 rules to answering Maths questions:
1) Am I actually answering the question?
2) Have I answered the whole question? (the question above has two parts)
3) UNITS!

With this question, it's important to realise it's compound interest, meaning you pay interest on your interest.

First, work out how much a 3% increase on the loan is.
Either do this by multiplying £6000 by 1.03 (this is the same as 103%)
Or you can do 6000 x (3/100) to find out the interest, then add the answer to 6000 to work out the total repayment for the first year.

6000 x 1.03 = £6180 for the first year
Or (6000 x (3/100)) + 6000 = £6180

do that for each year, remembering that it's compound interest so for the second year, the sum is £6180 x 1.03, not £6000 x 1.03...

Second year = 6365.3
Third year = 6556.362
Fourth year = 6753.05286

a) How much interest has Jill accrued after 2 years?

At the end of the 2nd year, Jill owes £6365.30 but that's not the answer (remember rule 1). We want to know the interest, not the total repayment.
£6365.30 - £6000 = £365.30

b)  What is the total amount to be paid after 4 years?

We've already calculated 6753.05286, but remember units. We don't pay in less than pennies. So rounding the answer, we get £6753.05

Rebecca W. GCSE Maths tutor, GCSE Biology tutor, Mentoring -Personal ...

1 year ago

Answered by Rebecca, a GCSE Maths tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

780 SUBJECT SPECIALISTS

£22 /hr

Eleanor H.

Degree: Biochemistry (Bachelors) - Bristol University

Subjects offered:Maths, Chemistry+ 1 more

Maths
Chemistry
Biology

“ABOUT ME: I am a biochemistry student, currently studying at the University of Bristol, and have had a passion for the natural sciences from a very young age. I am patient, hardworking and experienced, having tutored students in Maths...”

£18 /hr

Vlad B.

Degree: Mathematics (Masters) - Bath University

Subjects offered:Maths, Further Mathematics

Maths
Further Mathematics

“Hi! I am studying Mathematics at Bath University and I am passionate about teaching, and learning mathematics.”

MyTutor guarantee

|  1 completed tutorial

£20 /hr

Bea A.

Degree: MMath Pure Mathematics (Masters) - St. Andrews University

Subjects offered:Maths, English Literature

Maths
English Literature

“I am an experienced mathematician with a personal approach to tutoring. I'm here to help you further your mathematical potential.”

About the author

Rebecca W. GCSE Maths tutor, GCSE Biology tutor, Mentoring -Personal ...

Rebecca W.

Currently unavailable: for new students

Degree: Medicine (Bachelors) - University College London University

Subjects offered:Maths, Biology+ 2 more

Maths
Biology
-Personal Statements-
-Oxbridge Preparation-

“About me Hi! I am a medical student at UCL but I did my first three years of medical school at Cambridge University. I have always enjoyed learning and would love to help you feel that way too! I have experience tutoring people of a ...”

You may also like...

Posts by Rebecca

Jill takes out a loan of £6000 to get a car. The loan has a compound interest of 3% and she takes it out for 4 years. a) How much interest has Jill accrued after 2 years? b) What is the total amount to be paid after 4 years?

Which best describes the function of a cell membrane? (a) It keeps the cell in shape. (b) It controls the substances entering and leaving the cell. (c) It controls the substances entering the cell. (d) It supports the cell structures.

Other GCSE Maths questions

Solve the simultaneous equations: 2x+2y=12 x-y=8 You must show your working

Solve ((3x+2)/(x-1)) +3 =4

Three positive whole numbers have a mean of 6. What is the greatest possible range of the three numbers?

How to find the roots of a Quadratic Equation by Factorising?

View GCSE Maths tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok