(1) The amount outstanding under a financial supplement contract at a time (the test time ) before 1 June in the year immediately after the year in which the contract was made is the amount worked out using the formula:
(2) For the purpose of applying the formula in subsection (1) at the test time:
"amounts repaid" means the total of the amounts repaid under the contract before the test time.
"discounts" means the total of the discounts to which the person became entitled before the test time.
"principal sum" means the principal sum at the test time.