Starter quiz
- When money is added to an account, it can be said that the account has been ______ with that amount.
- credited ✓
- debited
- added
- subtracted
-
- Credit (rating) is a ______ score reflecting how trusted you are to pay back any money that you borrow.
- qualitative
- numerical ✓
- descriptive
-
- Which of the following are emergency expenses?
- council tax
- festival tickets
- car MOT
- boiler repair ✓
- holiday insurance
-
- Sofia's mobile phone contract costs £33.50 per month. What is her annual phone bill?
- '£402' ✓
- Calculate 15% of 360
- '54' ✓
- Calculate 35% of £640
- '£224' ✓
Exit quiz
- The ______ is the cost of borrowing money on a credit card or loan over a year.
- 'APR' ✓
- Match the word/phrase with the correct definition.
- Interest⇔Money added to savings or loans ✓
- Simple interest⇔Always calculated on the original amount ✓
- Compound interest⇔Calculated on the original amount and the interest over the period ✓
- Rate of interest⇔Percentage by which an amount will increase ✓
- Alex borrows £60 and has to pay it back with 6% interest. What is the total he has to repay?
- '£63.60' ✓
- Sofia borrows £70 and has to pay it back with 7.5% interest. What is the total she has to repay?
- '£75.25' ✓
- I borrow £450 and have to pay it back plus interest. I am asked to make 3 equal payments of £156.30. How much must I pay back in total?
- '£468.90' ✓
- I borrow £450 and have to pay it back plus interest. I am asked to make 3 equal payments of £156.30. Which interest rate has been applied?
- 2.4%
- 4.03%
- 4.2% ✓
- 35%
-
Worksheet
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Presentation
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Lesson Details
Key learning points
- Certain situations may require planned saving/ borrowing. Interest rates and my circumstances will affect my choices.
- Saving schemes/borrowing arrangements need to be analysed to determine the most appropriate choice for my circumstances.
- Planned and organised saving/borrowing over extended periods of time can be useful when managing my money effectively.
Common misconception
Being in debt is always bad.
Managing debt is a key skill and being able to do this may save you money over a longer term.
Keywords
Annual percentage rate - The annual percentage rate (APR) is the cost of borrowing money on a credit card or loan over a year.
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