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.

Clive agreed to pay back a lump sum of £4000 and 6 installments of £200.

Rosie pays £20 in the first month. Each month after that she pays twice as much as the previous month for a total of eight months.

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

Share

Topics: Starter | Arithmetic | Money

• Transum,
•
• As well as the mathematical skills required to calculate the amount these loans actually cost there is also another learning objective associated with this activity. Young people should develop a sense of what interest means and what the consequences of borrowing money are. Fixed and variable rates of interest can be difficult to comprehend and many people find themselves borrowing more than they can afford to pay back. It is an important aspect of the Maths Teacher’s job to help students develop a healthy attitude towards personal loans and to equip them with the numeracy skills to make good judgments.
• Chris Smith, Bushenyi, Uganda
•
• An excellent starter for the year one students at this Primary Teachers' College in Western Uganda. I selected the 14 weakest for this group, on basis of their O level results. They found the starter a challenge, even when they had understood the words. Class sizes are between 55 and 70, so identifying and helping the weakest, the strongest, not to mention the ones in the middle, is a challenge. (I am running evening tutorials with my personal modem, no internet at college.).
• Rachel, Melbourne
•
• My class and I had a debate on what the answer was for Rosie. Most people said the answer was \$5,100 and I said it was \$5,120, as you times the previous month to get the amount for the next month. For some reason they said that you add all the previous months to \$2,560 to get \$5,100. I said that you multiple \$2,560 times two to get \$5,120 as it says you double to amount from the previous month. The grammar in that problem was not clear enough.

How did you use this starter? Can you suggest how teachers could present or develop this resource? Do you have any comments? It is always useful to receive feedback and helps make this free resource even more useful for Maths teachers anywhere in the world.

If you don't have the time to provide feedback we'd really appreciate it if you could give this page a score! We are constantly improving and adding to these starters so it would be really helpful to know which ones are most useful. Simply click on a button below:

Excellent, I would like to see more like this
Good, achieved the results I required
Satisfactory
Didn't really capture the interest of the students
Not for me! I wouldn't use this type of activity.

This starter has scored a mean of 3.2 out of 5 based on 128 votes.

Previous Day | This starter is for 15 July | Next Day

 This activity is suitable for students of mathematics all around the world. Use the button below to change the currency symbol used to make it more relevant to your students. You may wish to choose an unfamiliar currency to extend your students' experience.

Your access to the majority of the Transum resources continues to be free but you can help support the continued growth of the website by doing your Amazon shopping using the links on this page. Below is an Amazon search box and some items chosen and recommended by Transum Mathematics to get you started.

 Teacher, do your students have access to computers?Do they have iPads or Laptops in Lessons? Whether your students each have a TabletPC, a Surface or a Mac, this activity lends itself to eLearning (Engaged Learning).

Transum.org/go/?Start=July15

Here is the URL which will take them to a related student activity.

Transum.org/go/?to=Interest

Images of students used in this Starter are courtesy of photostock FreeDigitalPhotos.net

For Students:

For All: