A community sports club borrows £24,000 for one year to resurface its tennis courts. Interest is calculated only on the initial loan.
| Loan | Annual interest rate |
|---|---|
| A | 4.5% |
| B | 5.25% |
Which figure is the reduction in interest payable over the year if the club chooses Loan A rather than Loan B?
£18,000
£18
£1,800
£180
82 exam-style questions on OCR GCSE Economics 2.8 The role of money and financial markets, covering 2.8.1 Money as a medium of exchange, 2.8.2 Role of the financial sector, 2.8.3 Importance of the financial sector, 2.8.4 Interest rates and saving, borrowing, investment, and 2.8.5 Effect of interest rate changes. Each one has a worked solution and a mark scheme showing where the marks go.