Interest & Banking
📋 What it is
Banks pay interest on savings and charge interest on loans; interest is a percent of the amount.
🗣️ Coach says
Interest is money that money earns (or costs). Save in a bank and it pays you a small percent; borrow and you pay a percent. Because it's a percent, bigger amounts earn or cost more.
🧠 Memory hook
Interest = a percent of the amount, per year. Banks PAY it on savings, CHARGE it on loans.
😂 Giggle
What do you call a rich elf?
Welfy!
😲 Whoa!
Compound interest — earning interest on your interest — is so powerful Einstein reportedly called it the "eighth wonder of the world".
✅ Quick check: You save $100 at 5% interest per year. How much interest after one year?
Say your answer out loud first — then reveal.
$5 — 5% of 100 = 0.05 × 100.
Simple interest is the percent rate times the amount.
🧪 Try it! (2 minutes)
Work out 10% interest on $50 saved for a year (find 10% of 50).