Question

Paula lent Ned $1200 to help him pay for a mountain bike that he desperately wants. She charged him 8%/a simple interest, payable weekly. Ned paid back the loan plus interest, in equal payments over 20 weeks.


a) How much interest will Ned have to pay? [2 marks]

b) What will be the total amount he will have to pay? [1 mark]

c) What will be his weekly payment for the loan? [1 mark]