Cash Management - Overdraft Question

Mollypod88Mollypod88 Well-KnownRegistered Posts: 155
Hi All,

I have a question regarding overdraft facilities please can somebody explain how to get the answer:

"The bank is also offering a overdraft facility of £19500 which attracts an annual interest rate of 12%. The partners believe that they will require an average overdraft of £16,000 for 8 months of the first year"

Answer = £1280

How do I get to this answer?

Many thanks!

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