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 4

Split loan repayment into interest and principal - exam scenario

Confirm the modelling meaning first. A public transport unit loan balance is 25000 before a repayment of 950. 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.