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# Cash & Treasury Management Assement 1 - Task 7 B

Vicki92
Registered Posts:

**3**
I literally CAN NOT figure out this task! The answer is 14% but how!?

any help appreciated, thanks x

any help appreciated, thanks x

0

## Comments

11The workings are as follows, £8000 * 120 (which is the total monthly repayments in ten years) = £960,000

Then you need to split the capital amount and interest, so take away the £960,000 which is the total of both the capital and interest from the original loan of £400,000. The interest is therefore £560,000 divide this by the capital of £400,000 and then times by 100 for the percentage. You should get 140, then divide this by ten to give you the annual interest.

Hope this helps.

111Just read the question and look for the traps. Good luck.