Reducing balance loans are calculated on the balance owing and not the initial amount borrowed. As payments are made, the balance owing is reduced and hence the interest charged is reduced. This video highlights how recursion in reducing balance loans work in QCE General Maths, and how to graph them.
QCE Lesson Examples – Recursion and Reducing Balance Loans
During quarantine, a few teachers uploaded their class videos online. They are quite long but are worth the watch if you need to consolidate the information further.
Part 1
Part 2
Graphing a Reducing Balance Loan
The following video explains how to graph a reducing balance loan
Want to learn more? Check out more of our QCE General Maths resources here!
