Remember: A big loan has a size, a plan and an extra price, and it runs longer than a small one. Ask: how much, how long, what extra, and what if I am late? These are made-up loans.
Read and answer
Read the story first, then answer.
Three big wishesOn market day in Lantern Bay, three neighbors each carried a big wish, and each cost more than anyone could save in a few months. Tilda the baker needed a delivery car, so she asked for a car loan of 12 coins. The Orla family wanted a cottage, so their home loan would be 60 coins. Mira dreamed of building boats and would borrow 24 coins for school. Bea the lender said a big loan works like a small one, with a size, a plan and an extra price, and just runs longer. Bigger things need longer plans, because pay arrives a little at a time. The car loan takes two years at six coins a year. Mira's takes four years at six a year. The cottage takes six years at ten coins a year. A car wears out a little each year, which is why car loans are usually the shortest. Bea held a claim on the car until it was paid, and the Orlas' home loan had a claim too, on the cottage. A claim lets the lender take the car back, but only if payments stop for a long time, and most lenders would rather make a new plan, so talking early matters. Mira's school loan had no claim, because learning cannot be handed back. She hoped boat building would pay well, but a hope is not a promise. A careful borrower asks four things before any big loan: how much, how long, what extra, and what if I am late?
1
Join each loan to what it pays for.
1Car loan
2Home loan
3School loan
Aa cottage for the family
Blessons at the Academy
Ca delivery car for bread
2
The cottage is 60 coins and the Orlas pay 10 a year. The loan takes years.
3
A bigger loan usually needs a longer plan, because pay arrives a little at a time.
TrueFalse
4
Why are car loans usually the shortest?
Cars cost the mostThe lender forgets about carsA car wears out a little each year
5
Mira's school loan had no claim. Why?
Learning cannot be handed backSchool costs nothingMira promised to be good
Order, match and fix
6
Number the loans from the shortest plan to the longest.
Home loan: six years
Car loan: two years
School loan: four years
7
Join each careful question to what it asks.
1How much?
2How long?
3What extra?
4What if I am late?
Athe size of the loan
Bthe price on top
Cwhat happens if a payment is missed
Dthe length of the plan
8
If payments stop for a long time, the lender may take back the car.
TrueFalse
9
Leo says: a lender takes the car back the moment one payment is late. What does the story say?
Only if payments stop for a long time, and most lenders would rather make a new planA claim means nothing at allAlways, on the first late day
10
Mira's school loan is sure to pay off, because boat builders always earn well.
TrueFalse
11
Stretch: Mira's loan is 24 and she has paid 6 a year for 3 years. Ignoring the extra price, coins are left.
12
Write one question you would ask Bea before taking a big loan.
13
Draw a bar for each loan: the shortest for the car, longer for school, longest for the cottage.
Scan the code at the top to mark this sheet on screenTake a photo of your answers or type them. It is marked for you automatically, and your score is kept.
Answer key · Set A
Big loans: car, home, school
11-C, 2-A, 3-B Tilda's car loan buys a delivery car, the Orlas' home loan buys a cottage, and Mira's school loan pays for the Academy.
26 6 × 10 = 60, so the cottage loan takes six years.
3True Bigger things need longer plans. The cottage, the biggest, takes the longest.
4A car wears out a little each year Tilda's car carried bread for miles, but it wore out a little each year.
5Learning cannot be handed back A claim lets a lender take something back. Learning cannot be handed back.
63, 1, 2 Two years, then four, then six. The home loan costs the most, so it runs longest.
71-A, 2-D, 3-B, 4-C A careful borrower asks about the size, the length, the extra price, and what happens if a payment is late.
8True That is what a claim means. Most lenders would still rather make a new plan, so talking early matters.
9Only if payments stop for a long time, and most lenders would rather make a new plan A claim lets the lender take the car back, but only if payments stop for a long time.
10False She hoped boat building would pay well, but a hope is not a promise.
116 3 × 6 = 18 and 24 − 18 = 6, which is the last year's payment.
12Your own words: a grown-up reads it.
Mark each answer, count the right ones and write the score on the sheet.