A lender sends a printing firm revised terms for its loan.
| Loan term | Detail |
|---|---|
| Outstanding balance | £250,000 |
| Previous annual interest rate | 12% |
| Revised annual interest rate | 10% |
| Period covered | 12 months |
| Interest calculation | Simple interest |
Under the revised terms, how much less interest will the firm pay over the 12-month period?
£500
£5,000
£25,000
£416.67
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.