A wind-turbine maintenance firm expands and obtains cheaper finance. In each case, it holds the full loan for the whole year. The table shows information before and after the expansion.
| Maintenance jobs completed during the year | Loan | Annual interest rate | |
|---|---|---|---|
| Before expansion | 500 | £400,000 | 7.5% |
| After expansion | 2,000 | £1,000,000 | 4.5% |
How much lower is the firm's annual interest cost per maintenance job after the expansion? Show your working.
138 exam-style questions on AQA GCSE Economics 1.4 Production, costs, revenue and profit, covering 1.4.1a Business objectives, 1.4.1b Types of costs and revenue, 1.4.1c Calculating profit, 1.4.1d Profit as an incentive to produce, 1.4.1e Moral and ethical considerations, 1.4.2a Production versus productivity, 1.4.2b Factors and benefits of productivity, 1.4.3a Economies of scale and business behaviour, 1.4.3b Types of economy of scale, and 1.4.3c Diseconomies of scale. Each one has a worked solution and a mark scheme showing where the marks go.