Remember: Unpaid extra joins the pile and grows too. A spiral is no failing: pay at least the extra to hold it, and pay more to turn it back.
Read and answer
Read the story first, then answer.
The pile in Reed BendIn the pretend town of Reed Bend, Jun owed a lender thirty coins, and lots of people owe, which is very ordinary. Each month the lender added one extra coin for every full ten owed. One month the roof leaked and fixing it took everything Jun had, so nothing was paid, which happens to many families. At the month's end three extra coins joined the pile, so thirty became thirty-three. Still nothing was paid, so three more joined to make thirty-six. The extra joins the pile, so next month there is extra on the extra, and that is why it is called a spiral. A second lender lent Jun three coins to cover the first one's extra, but borrowing to pay borrowing only moves the pile around, and now both lenders added extra coins. Jun felt tired and worried, a normal feeling that many people have had. Then Ro sat down and said, "Let's look at it together. First, talk to the lender early. Many lenders will agree on a plan." A plan means a set amount each month, on a calendar both can see. Paying at least the month's extra stops the pile growing, and paying a bit more turns it back.
1
Jun pays nothing. Look at the table. After month 3 the pile is coins.
2
Thirty became thirty-three. Where did the 3 come from?
Jun borrowed 3 moreOne extra coin for each full ten owedThe lender gave 3 coins
3
A pile with nothing paid stays the same size.
TrueFalse
4
39 owed has three full tens, so next month it is 39 + 3 = .
5
Join each payment to what happens to Jun's pile of 30 after six months.
1Pays nothing
2Pays 3 a month
3Pays 5 a month
4Pays 8 a month
Agrows to 50
Bstays at 30
Cshrinks to 11
Dnone is left
6
Why did Jun's second loan not fix the spiral?
It was a giftIt cancelled the first loanIt moved the pile and started a second extra
Stop the spiral
7
Circle every one that helps the spiral stop.
Talking to the lender earlyPaying nothing for monthsPaying at least the month's extraBorrowing again to cover the extraPaying a bit more than the extra
8
Number Jun's story.
Jun owes thirty coins
The extra joins the pile and it spirals
Ro sits down to look at it together
The roof leaks and nothing is paid
9
The extra joins the pile, so next month there is extra on the .
rooflenderextra
10
Jun says: a spiral means I have failed. Is Jun right?
YesNo
11
Jun says: paying 3 a month will make the pile shrink fast. What really happens on 30 owed?
It holds at 30, because 3 only pays the extraIt shrinks to 11It grows to 50
12
Paying 8 a month, the pile goes 30, 25, 19, 12, 5, then none. After month two it is coins smaller than at the start.
13
Write one reason it helps to talk to a lender early.
14
Draw a spiral that grows. Put a coin at each turn.
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Answer key · Set A
The debt spiral
139 36 has three full tens, so 3 more join it: 36 + 3 = 39.
2One extra coin for each full ten owed 30 has three full tens, and the lender adds one extra coin for every full ten.
3False The extra joins the pile, so next month there is extra on the extra.
442 Three full tens add three extra coins: 39 + 3 = 42.
51-A, 2-B, 3-C, 4-D Nothing paid climbs to 50. Paying just the extra holds at 30. Paying more shrinks it, and 8 a month clears it in five months.
6It moved the pile and started a second extra It covered one extra but started another, so the pile only moved.
7Talking to the lender early, Paying at least the month's extra, Paying a bit more than the extra Talking early, paying the extra and paying a bit more all help. Paying nothing or borrowing again feeds the spiral.
81, 3, 4, 2 The debt came first, then the leak, then the spiral, and last Ro's help.
9extra That is why it is called a spiral: it turns faster as it grows.
10No A spiral is no failing. It is just a pile that grows when little is paid.
11It holds at 30, because 3 only pays the extra 30 + 3 − 3 = 30. Paying just the extra stops the growing, but it does not shrink the pile.
1211 30 − 19 = 11.
13Your own words: a grown-up reads it.
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