A community arts charity has £24,000 outstanding on a loan. It is comparing the interest payable over the next 18 months if the annual interest rate remains at 3.5% with the interest payable at a revised rate of 4.25%. Assume the balance remains unchanged and each rate applies throughout the 18 months.
Calculate the increase in the charity's interest over the 18 months.
116 exam-style questions on OCR GCSE Economics 3.6 Monetary policy, covering 3.6.1 What is monetary policy, 3.6.2 Monetary policy and macro objectives, and 3.6.3 Effects of monetary policy. Each one has a worked solution and a mark scheme showing where the marks go.