Following a decision by the Central Bank to raise the bank rate in response to rising inflationary pressures, a business with a variable-rate commercial loan of £435,000 sees its annual borrowing interest rate increase from 3.15% to 6.45%.
Calculate the increase in the amount of interest paid per month by the business. Give your answer to the nearest pound (£).
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.