A lender is paid a little extra for waiting, called interest.
Ana needed 10 pretend coins for reeds. Lena the lender could not use her coins while Ana had them, so she waited.
Lena asked one extra coin for each week of waiting. After one week Ana paid back 10 + 1 = 11 coins.
The extra is called interest. It is the price of borrowing, because the lender is paid for waiting.
A good lender says the extra before the borrowing starts, so nobody is surprised.
These are some of the questions on the sets. The printable sheets have more and an answer key.
11 coins. 10 + 1 = 11.
2 coins. 12 − 10 = 2.
14 coins. 10 + 4 = 14, one extra coin for each week.
With a grown-up, talk about why someone who lends might ask for a little extra, and why a good lender says the price first.
These are pretend coins. Talk about why someone who lends might ask for a little extra, and why a good lender says the price first. Tutorpip never pays interest on your child's real credits; this episode is about a story lender only.
