Financial: Jack borrows €160,000 at 3%. At the end of Year 1, he repays €20,000.

[Aleena]

Financial: Jack borrows €160,000 at 3%. At the end of Year 1, he repays €20,000.

Im looking over financial maths now, its a simple question but my teacher didn't give us the answer so i dont know if im right or not.
"Jack borrows €160,000 at 3%. At the end of Year 1, he repays €20,000. The rate of interest is lowered to 2%. How will he owe at the end of the second year ?

 

[Deleted member 4993]

Im looking over financial maths now, its a simple question but my teacher didn't give us the answer so i dont know if im right or not.
"Jack borrows €160,000 at 3%. At the end of Year 1, he repays €20,000. The rate of interest is lowered to 2%. How will he owe at the end of the second year ?

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