Understanding and Applying Loans
Mathematics
General
10 questions
~20 mins
1 views0 downloads
About This Worksheet
This medium level financial worksheet is designed for grade 7 to develop key mathematical skills. It includes 10 engaging problems covering essential concepts in financial. Perfect for classroom practice, homework, or assessment preparation. This worksheet helps students build confidence and proficiency in mathematics through structured practice with clear solutions provided.
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Understanding and Applying Loans
Subject: MathematicsGrade: General
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Understanding and Applying Loans
Instructions: Read each question carefully. Show all your work for calculation questions. Use the formulas provided or your knowledge to find the answers. Check your answers for accuracy.
A
Section 1: Understanding Loans
Learn the basic terms related to loans and understand how the loan payment formula works.
1.
Define the term 'principal' in the context of a loan.
[1 mark]2.
What is the formula to calculate the monthly payment (M) for a loan with principal P, annual interest rate r (as a decimal), and loan term in months n?
[2 marks]B
Section 2: Calculating Loan Payments
Practice calculating monthly payments and total interest paid over the loan period.
1.
A student borrows $1200 to buy a new bicycle. The loan has an annual interest rate of 6% and must be paid back in 12 months. What is the monthly payment?
[2 marks]2.
Using the loan details above, calculate the total amount paid over the entire loan period and the total interest paid.
[3 marks]C
Section 3: Loan Amortization
Understand how loan payments are split between interest and principal over time using amortization tables.
1.
Create a simple amortization table for the first 3 months of a $1000 loan with 12% annual interest, paid monthly over 12 months. Show the interest, principal paid, and remaining balance for each month.
[4 marks]2.
Interpret the following amortization snippet: In month 1, interest paid is $10, principal paid is $80, remaining balance is $920. What does this tell you about the loan payments?
[2 marks]D
Section 4: Real-World Applications
Solve practical problems involving loans in everyday situations.
1.
Emma wants to buy a laptop costing $800. She takes a loan with an annual interest rate of 5%, to be paid back over 10 months. What will be her monthly payment?
[2 marks]2.
A family borrows $10,000 to buy a new car. The loan has an annual interest rate of 4% and is to be paid over 5 years. How much total interest will they pay if they make regular monthly payments?
[3 marks]3.
Jacob wants to pay off a $5000 loan in 24 months with an annual interest rate of 7%. What is the approximate monthly payment?
[2 marks]4.
Sarah borrowed $1500 for a vacation. The loan has an interest rate of 8% annually, and she plans to pay it back in 6 months. How much total interest will she pay?
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Details
- Created
- 5/11/2025
- Updated
- 12/31/2025
- Type
- worksheet