# Savings

In this lesson, we will learn how savings grow over time. We will investigate how to calculate the amount of time it would take to save a given amount with regular small deposits, and the concepts of simple and compound interest.

#### 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.A mortgage is a debt that must be repaid, with interest, as a result of purchasing a house.

1/5

Q2.If you had a mortgage, you would prefer to have a high interest rate.

2/5

Q3.If I borrowed £100,000 in the form of a mortgage at a rate of 4% per year interest for 5 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

3/5

Q4.If I borrowed £350,000 in the form of a mortgage at a rate of 3.2% per year interest for 20 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

4/5

Q5.Which would cost more? A £200,000 mortgage that had a rate of 0.5% for 35 years or a £120,000 mortgage that had a rate of 3% for 25 years?

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.A mortgage is a debt that must be repaid, with interest, as a result of purchasing a house.

1/5

Q2.If you had a mortgage, you would prefer to have a high interest rate.

2/5

Q3.If I borrowed £100,000 in the form of a mortgage at a rate of 4% per year interest for 5 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

3/5

Q4.If I borrowed £350,000 in the form of a mortgage at a rate of 3.2% per year interest for 20 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

4/5

Q5.Which would cost more? A £200,000 mortgage that had a rate of 0.5% for 35 years or a £120,000 mortgage that had a rate of 3% for 25 years?

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:

# Savings

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

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:

# Savings

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

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

# Lesson summary: Savings

## Time to move!

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

For 5 mins...

Move around:
Climb stairs

On the spot:
Chair yoga