# Payday Loans

In this lesson, we will learn about how payday loans work. We will investigate the risks involved in high interest loans and calculate regular repayment plans including comparing total repayment costs to original loan amounts.

#### Unit quizzes are being retired in August 2023

Why we're removing unit quizzes from the website >
Quiz:

# Intro quiz - Recap from previous lesson

Before we start this lesson, let’s see what you can remember from this topic. Here’s a quick quiz!

Q1.If you saved £300 a month, how long would it take you to save £9,600?

1/5

Q2.Simple interest is the interest that accrues upon the initial amount borrowed (or saved), and the interest, as times goes on.

2/5

Q3.Compound interest is the interest that accrues upon the initial amount borrowed. It is a fixed sum every year (or other time period).

3/5

Q4.If I saved £5,000 with Oak National Bank at a compound interest rate of 7% for 9 years, how much would I have, rounded to the nearest penny, at the end of the 9 years?

4/5

Q5.When you save money, you want a low interest rate.

5/5

#### Unit quizzes are being retired in August 2023

Why we're removing unit quizzes from the website >
Quiz:

# Intro quiz - Recap from previous lesson

Before we start this lesson, let’s see what you can remember from this topic. Here’s a quick quiz!

Q1.If you saved £300 a month, how long would it take you to save £9,600?

1/5

Q2.Simple interest is the interest that accrues upon the initial amount borrowed (or saved), and the interest, as times goes on.

2/5

Q3.Compound interest is the interest that accrues upon the initial amount borrowed. It is a fixed sum every year (or other time period).

3/5

Q4.If I saved £5,000 with Oak National Bank at a compound interest rate of 7% for 9 years, how much would I have, rounded to the nearest penny, at the end of the 9 years?

4/5

Q5.When you save money, you want a low interest rate.

5/5

# Video

Click on the play button to start the video. If your teacher asks you to pause the video and look at the worksheet you should:

• Click "Close Video"
• Click "Next" to view the activity

Your video will re-appear on the next page, and will stay paused in the right place.

# Worksheet

These slides will take you through some tasks for the lesson. If you need to re-play the video, click the ‘Resume Video’ icon. If you are asked to add answers to the slides, first download or print out the worksheet. Once you have finished all the tasks, click ‘Next’ below.

#### Unit quizzes are being retired in August 2023

Why we're removing unit quizzes from the website >
Quiz:

# Payday Loans

Don’t worry if you get a question wrong! Forgetting is an important step in learning. We will recap next lesson.

Q1.A payday loan is defined as a small amount of money usually borrowed for a short period of time that is typically paid back when someone receives their next form of income. They often have very high levels of interest attached to them.

1/5

Q2.If you borrowed £100 at 4% compound interest for 5 years, assuming no repayments, how much would you owe at the end of the term? Round to the nearest penny.

2/5

Q3.If you borrowed £125 at an interest rate of 1,800% for 5 years, assuming no repayments, how much would you owe at the end of the term? Round to the nearest pound.

3/5

Q4.If you borrowed £125 at an interest rate of 1,800% for 7 weeks, assuming no repayments, how much would you owe at the end of the term? Round to the nearest penny.

4/5

Q5.A payday loan is a cheaper option for finance than a credit card.

5/5

#### Unit quizzes are being retired in August 2023

Why we're removing unit quizzes from the website >
Quiz:

# Payday Loans

Don’t worry if you get a question wrong! Forgetting is an important step in learning. We will recap next lesson.

Q1.A payday loan is defined as a small amount of money usually borrowed for a short period of time that is typically paid back when someone receives their next form of income. They often have very high levels of interest attached to them.

1/5

Q2.If you borrowed £100 at 4% compound interest for 5 years, assuming no repayments, how much would you owe at the end of the term? Round to the nearest penny.

2/5

Q3.If you borrowed £125 at an interest rate of 1,800% for 5 years, assuming no repayments, how much would you owe at the end of the term? Round to the nearest pound.

3/5

Q4.If you borrowed £125 at an interest rate of 1,800% for 7 weeks, assuming no repayments, how much would you owe at the end of the term? Round to the nearest penny.

4/5

Q5.A payday loan is a cheaper option for finance than a credit card.

5/5

# Lesson summary: Payday Loans

## Time to move!

Did you know that exercise helps your concentration and ability to learn?

For 5 mins...

Move around:
Jog

On the spot:
Dance