Business Studies Multiple Choice Question – 1 August 2017

Business Studies

A small bookshop runs an overdraft of £1,000 for the past 12 months. The rate of interest on the overdraft was 8%. The bank has now written to the business saying that its overdraft rate will change to 10%? What will be the increase in its overdraft interest costs if it borrows £1,000 for another 12 months?

Select ONE answer:

  1. £100
  2. £80
  3. £20
  4. £10
  5. £50

What will be the increase in its overdraft interest costs if it borrows £1,000 for another 12 months at 16% interest?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – Year 1 interest = £1,000 * 8% = £80 Year 2 interest = £1,000 * 10% = £100. The difference is £100 -£80 = £20 increase in overdraft interest costs.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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