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Reducing-Balance Loans & Repayments (Grade 12)

Free printable Grade 12 General Mathematics worksheet on reducing-balance (amortised) loans: monthly repayments, balance owing and total interest, all computed. Aligned to ACARA Senior Secondary General Mathematics (ACMGM097, ACMGM098).

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Grade 12 · Math worksheet
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Math

Consumer Finance: Reducing-Balance Loans & Repayments

A reducing-balance loan is a compound-interest loan with regular repayments. Use PMT = P i / (1 - (1 + i)^-n) for the repayment, and track the balance with B <- B(1 + i) - PMT.

  1. 1.
    A $410,000.00 home loan is taken at 6% per annum (reducing balance), repaid monthly over 15 years. Find the monthly repayment (to the nearest cent).
  2. 2.
    A $230,000.00 home loan is taken at 4% per annum (reducing balance), repaid monthly over 25 years. Find the monthly repayment (to the nearest cent).
  3. 3.
    A $100,000.00 home loan is taken at 3% per annum (reducing balance), repaid monthly over 15 years. Find the monthly repayment (to the nearest cent).
  4. 4.
    A $100,000.00 home loan is taken at 7.2% per annum (reducing balance), repaid monthly over 30 years. Find the monthly repayment (to the nearest cent).
  5. 5.
    A $60,000.00 car loan at 8% per annum (reducing balance) is repaid monthly over 4 years with equal repayments of $1,464.78. How much is still owing after 31 payments?
  6. 6.
    A $30,000.00 car loan at 9% per annum (reducing balance) is repaid monthly over 3 years with equal repayments of $953.99. How much is still owing after 16 payments?
  7. 7.
    A $50,000.00 car loan at 12% per annum (reducing balance) is repaid monthly over 3 years with equal repayments of $1,660.72. How much is still owing after 17 payments?
  8. 8.
    A $60,000.00 loan at 6% per annum (reducing balance) is repaid with 36 equal monthly repayments of $1,825.32. Find the total interest paid over the life of the loan.
  9. 9.
    A $50,000.00 loan at 8% per annum (reducing balance) is repaid with 60 equal monthly repayments of $1,013.82. Find the total interest paid over the life of the loan.
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