Student Loans

Six students borrow £5000 to help pay for their university course. Calculate how much each will have to pay back to the lender.

Eugene agreed to pay back £95 a month for five years. Nung has to pay back £490 per year for the next 12 years.  Julie needs to pay back £800 this year, £900 next year and then continue paying £100 more than the previous year for a total of six years.
Ted will pay back the amount he borrowed plus 10% interest. Rosie agreed to pay back a lump sum of £4000 and 6 installments of £200. Clive pays £20 in the first month. Each month after that he pays twice as much as the previous month until the total amount he has paid back is at least equal to the amount he borrowed.

 

 

 

 

 

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Previous Day | This starter is for 15th July | Next Day
Teacher, do your students have one to one access to computers?

Whether your students each have a TabletPC or share a desktop PC, this activity lends itself to eLearning (Engaged Learning).

This activity is a wonderful problem to be solved with the aid of a spreadsheet. Hot only will it help calculate the solution it will also show others how the loans compare.

 

Answers

Eugene:  5 x 12 x £95 = £5700
Nung: 12 x £490 = £5880
Julie: £800 + £900 + £1000 + £1100 + £1200 + £1300 = £6300
Ted: £5000 x 1.1 = £5500
Rosie: £4000 + 6 x £200 = £5200
Clive: £20 + £40 + £80 + £160 + £320 + £640 + £1280 + £2560 = £5100

So it appears that the student loan taken by Clive attracted less interest than the other student loans.