Interest rates, savings and loans

You are working out a money problem on a calculator. The answer comes up as 163.8

How do you write this down?

• £163.08

• 163.80p

• £163.80

• £163.80p

• 163.8p

If you save £100 for a year at 10% APR, how much money do you have at the end of the year?

• £101

• £110

• £100.10

• £1100

• £10.10

What is APR? Tick all that apply

• A way of comparing different loans or savings accounts

• Average Personal Religions

• None of the answers here

• Annual Percentage Rate

You need a loan for £500 for 2 years. you shop around for the best interest rates, and find suitable loans at 4.5%, 6.7% and 12.9% APR. Which loan rate should you choose?

• The loan at 12.9% because it is the best value

• The loan at 4.5% because it is the cheapest

• The loan at 6.7% because it is in the middle

• It doesn't matter because I will pay the same amount overall

What are the downsides of payday loans?

• They are very high interest rates and charges

• They should only be used for very short-term borrowing over days or weeks

• It is very easy to get into serious debt if you are not careful

• All of the answers here are true

What is an unsecured loan?

• A loan where you lose the paperwork

• A personal loan taken out without providing security such as a house

• A loan you don't have to re-pay

• There is no such thing

If you find yourself getting into debt, what should you do?

• Don't worry about it; just go shopping and buy yourself something nice to cheer yourself up

• Use a payday lending company to borrow more money

• Borrow money from friends to see you through, and deal with the problem later

• Stop spending immediately, then seek help and advice from family or the Citizens Advice Bureau

What is "interest" when talking about savings or loans? Tick all correct answers

• The money paid to you by the bank for the money you save with them

• The amount of money you borrow from the bank

• Whether the bank's adverts are entertaining or not

• The amount of money you are charged by the bank for borrowing money

• None of the above

You take out a payday loan for £1,000 with "Sunny" at 1299% APR. You find you cannot pay it off when you planned. How much interest will you owe after one year?

• 12990p

• £129.90

• £1299

• £12,990

• £12.99

You want to buy a new car. It costs £5,000, and you are offered a loan for it at £162.75 per month over 3 years. Which of these gives the correct calculation for the total amount you pay?

• 162.75 x 3 x 12

• 162.75 ÷ 36

• 5,000 ÷ 12 x 3

• 5,000 ÷ 162.75 x 36