A commercial laundry has two variable-rate loans. The annual simple interest rates on both loans change.
| Loan | Amount outstanding | Old annual interest rate | New annual interest rate |
|---|---|---|---|
| A | £50,000 | 6.0% | 7.2% |
| B | £30,000 | 8.0% | 7.5% |
Calculate the change in the commercial laundry's total monthly interest cost after the interest rates change. Show your working.
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.