IB skill practice

Split loan repayment into interest and principal

Separate one repayment into interest and principal reduction.

Paper 1, Paper 2 5 marks Difficulty 5

Split loan repayment into interest and principal - exam scenario

A delivery depot loan balance is 27800 before a repayment of 900. Monthly interest is 0.9%. Find the principal reduction in this repayment. Enter the requested value and choose the interpretation that matches the result.

Worked practice: result and interpretation

Calculate the requested result first, then choose the interpretation that follows from it.