💰 Part 1: Key Terms Quick Check

Interest is the _____________ you pay for borrowing money.

A loan is money that you _____________ and must pay back.

🧮 Part 2: Loan Calculator Challenge

Use a loan calculator to complete the scenarios below. Show your working in the boxes provided.

Loan Amount: £2,000 | APR: 6% | Term: 2 years

Monthly repayment: £ _________

Total amount repaid: £ _________

Total interest paid: £ _________

Loan Amount: £8,000 | APR: 4.5% | Term: 3 years

Monthly repayment: £ _________

Total amount repaid: £ _________

Total interest paid: £ _________

🎯 Part 3: Analysis & Advice

Option 1: 12% APR for 1 year | Option 2: 8% APR for 2 years

Which option would you recommend and why?

1. _________________________________________________

2. _________________________________________________