Question

briefly describe how interest is apportioned when rate of interest is not know ​

Answer 1

In this case, the amount of interest is apportioned by the ratio of the amount outstanding at the end of each period.

Explanation:

• When the interest rate is not given then only cash price and total payments are given.  
• We can say that the
• Interest paid = Difference between the total amount paid and cash price.
• It means the ratio of the outstanding amount is the apportioned interest of the principal amount.