Buying and working 3.3 borrowing

• Economie
• Middelbare school
• havo
• Leerjaar 4

What are we going to do today?

1. Borrowing, what is it?

2. Conditions

3. Interest

What is borrowing?

Money you lend beforehand to buy something sooner, which afterwards you pay back (Could be more then you lend).

Repaying

Paying back the money you borrowed

conditions

-Must be a minumum age of 18

-Stable financial situation

Name a financial matter which a bank will look at when someone asks for a loan

Interest

-Rule is the same, interest applies to a whole year when nothing else is stated.

-If stated so, the amount may differ, the interest stays the same

Year 1	Year 2	Year 3
10.000	5.000	3.000
8%	8%	8%

Sjors his car is essential for the work he performs. Unfortunally his car broke down and doesn't have the money to buy a new car. On 1 January he decides to borrow $10.000 for a new car. The interest is 5.8% on this loan. On 31 december of the first year he repays half of the amount and on 31 december of the second year he repays the other half. Calculate the total amount he must pay the bank.

What percentage is the total amount of interest compared to the loan?

Any questions about the homework?

yeh

nah

Did you learn anything this lesson?

Yeah!

Nah...

Just for myself: What can i do better next lesson?