An independent veterinary practice has a savings account and a variable-rate loan. The annual interest rates on both accounts rise by the same number of percentage points, and both balances remain unchanged for one year. Its annual net interest position is defined as annual interest received minus annual interest paid.
| Item | Information |
|---|---|
| Savings account balance | £4,000 |
| Variable-rate loan balance | £16,000 |
| Decrease in annual net interest position | £240 |
Ignoring compounding, what is the common rise in the two interest rates?
The common rise is 1.2 percentage points
The common rise is 2 percentage points
The common rise is 6 percentage points
The common rise is 1.5 percentage points
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.