A commercial laundry is considering installing a water-recycling system. It would borrow £48,000 for 18 months at 5% simple interest per year. The system is expected to increase profit by £5,100 over the 18 months, before interest is paid.
Calculate the commercial laundry's expected net gain from installing the water-recycling system after paying interest. Show your working.
75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.