Starter quiz
- Andeep wants to buy a phone costing £235. He is offered a loan that requires him to pay back £41/month for 6 months. How much would Andeep have to pay back in total?
- '£246' ✓
- Andeep wants to buy a phone costing £235. He is offered a loan that requires him to pay back £41/month for 6 months. How much interest does he pay?
- '£11' ✓
- Izzy wants to buy a laptop costing £880. She is offered a loan that requires her to pay back £77.25/month for 12 months. How much would Izzy have to pay back in total?
- '£927' ✓
- Izzy wants to buy a laptop costing £880. She is offered a loan that requires her to pay back £77.25/month for 12 months. How much interest does she pay?
- '£47' ✓
- Interest is money added to savings or loans. ______ interest is always calculated on the original amount.
- 'Simple' ✓
- ______ of interest is the percentage by which an amount will increase.
- 'Rate' ✓
Exit quiz
- ______ are used to purchase property (e.g. a house) and are typically paid back over 20-30 years.
- 'Mortgages' ✓
- Bank ______ tend to be used to borrow over £1000 (e.g. for a car) and are typically paid back over 1 to 5 years.
- 'loans' ✓
- ______ cards allow users to purchase items for up to a few thousand pounds. The credit card provider pays for the item and then the customer pays the provider back in a flexible way.
- 'Credit' ✓
- ______ loans are unsecured loans for typically between £50-£1000.
- 'Payday' ✓
- '______ pay later’ schemes allow customers to purchase an item and then pay for it over time with regular monthly payments.
- 'Buy now' ✓
- Select the best (cheapest) option if I want to go to the gym once a week for 11 months.
- Pay as you go - £7 per session
- Pay weekly - £10
- Pay monthly - £40
- Pay yearly - £300 ✓
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Worksheet
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Presentation
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Video
Lesson Details
Key learning points
- There are a range of financial products that suit different needs and circumstances.
- Financial institutions seek to make money from their financial products.
Common misconception
'Buy now, pay later' deals are always worth it as you can buy the thing you want even though you do not have enough money at the time.
Deals like this will always cost you more in the long-term if there is interest appied to the amount borrowed.
Keywords
Interest - Interest is money added to savings or loans. Simple interest is always calculated on the original amount.
Rate of interest - Rate of interest is the percentage by which an amount will increase.
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