Part 3:
Applications in Social Arithmetic

Loan Repayment

A mortgage is the special name for a loan which is used to buy a house. When you repay a mortgage, the payments are usually made once a month, and you usually repay part of the loan as well as part of the interest owed. Other types of mortgage exist but they are too specialised for this module.

The table below shows what the monthly repayments are, per £1,000 borrowed, for mortgages of different lengths of time at different percentage rates.

 Interest Rate
10 years
15 years
20 years
25 years
5%
10.79
8.03
6.69
5.91
6%
11.32
8.58
7.27
6.52
7%
11.86
9.15
7.87
7.15
8%
12.42
9.74
8.49
7.81
9%
12.99
10.34
9.13
8.48
10%
13.56
10.96
9.79
9.18
11%
14.15
11.59
10.46
9.90
12%
14.75
12.24
11.16
10.62
13%
15.36
12.90
11.86
11.37
14%
15.98
13.57
12.58
12.12