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Chapter 59: Borrowing Costs, Loans, Accounts, and Fees

Learn Grade 7 mathematics from very beginner explanations through worked examples, practice, reasoning, and review.

Grade 7Beginner Friendly10 Examples Per Topic30 Q&APractice + Review
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Chapter Overview

This chapter teaches Borrowing Costs, Loans, Accounts, and Fees with simple language, step-by-step reasoning, and original worked examples. Technical words are explained in plain language.

Key Technical Terms

  • Unit Rate (a rate per one unit)
  • Exchange Rate (the value of one currency expressed in another currency)
  • Principal (starting amount saved, invested, or borrowed)
  • Interest Rate (percentage used to calculate interest)
  • Loan (money borrowed that must be repaid)
  • Fee (a charge for a service or account)
  • Estimate (a close approximation used to check whether an answer is reasonable)
  • Solution (a value or result that satisfies the problem)
  • Representation (a way to show mathematics using symbols, diagrams, tables, graphs, or words)
  • Reasonableness (whether an answer makes sense in the context of the problem)

How to Learn This Chapter

Read the explanation first, follow the examples one step at a time, cover the answer and retry the problem yourself, then use the practice and review questions to check understanding.

59.1 Borrowing

Borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: Borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: Borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: Borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: Borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: Borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Borrowing. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.2 Loan

A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan .

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan .

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan .

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan .

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan .

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan .

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Loan. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.3 Principal borrowed

Principal is the starting amount saved, invested, or borrowed. This topic focuses on Principal borrowed .

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Find simple interest on $500 at 5% for 2 years.

  1. Use I=Prt.
  2. I=500×0.05×2.

Very beginner explanation: Principal is the starting amount saved, invested, or borrowed. This topic focuses on Principal borrowed .

Answer: $50.00

Worked Example 2

Problem: Find simple interest on $1000 at 4% for 3 years.

  1. Use I=Prt.
  2. I=1000×0.04×3.

Very beginner explanation: Principal is the starting amount saved, invested, or borrowed. This topic focuses on Principal borrowed .

Answer: $120.00

Worked Example 3

Problem: Find simple interest on $750 at 6% for 1 years.

  1. Use I=Prt.
  2. I=750×0.06×1.

Very beginner explanation: Principal is the starting amount saved, invested, or borrowed. This topic focuses on Principal borrowed .

Answer: $45.00

Worked Example 4

Problem: Find simple interest on $1200 at 3.5% for 4 years.

  1. Use I=Prt.
  2. I=1200×0.035×4.

Very beginner explanation: Principal is the starting amount saved, invested, or borrowed. This topic focuses on Principal borrowed .

Answer: $168.00

Worked Example 5

Problem: Find simple interest on $2000 at 2.5% for 5 years.

  1. Use I=Prt.
  2. I=2000×0.025×5.

Very beginner explanation: Principal is the starting amount saved, invested, or borrowed. This topic focuses on Principal borrowed .

Answer: $250.00

Worked Example 6

Problem: Find simple interest on $500 at 5% for 2 years.

  1. Use I = Prt.
  2. I = 500 × 0.05 × 2.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $50.00

Worked Example 7

Problem: Find simple interest on $1000 at 4% for 3 years.

  1. Use I = Prt.
  2. I = 1000 × 0.04 × 3.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $120.00

Worked Example 8

Problem: Find simple interest on $750 at 6% for 1 years.

  1. Use I = Prt.
  2. I = 750 × 0.06 × 1.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $45.00

Worked Example 9

Problem: Find simple interest on $1200 at 3.5% for 4 years.

  1. Use I = Prt.
  2. I = 1200 × 0.035 × 4.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $168.00

Worked Example 10

Problem: Find simple interest on $2000 at 2.5% for 5 years.

  1. Use I = Prt.
  2. I = 2000 × 0.025 × 5.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $250.00

Practice Exercise

Create one new question about Principal borrowed. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.4 Interest cost

Interest cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Find simple interest on $500 at 5% for 2 years.

  1. Use I=Prt.
  2. I=500×0.05×2.

Very beginner explanation: Interest cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $50.00

Worked Example 2

Problem: Find simple interest on $1000 at 4% for 3 years.

  1. Use I=Prt.
  2. I=1000×0.04×3.

Very beginner explanation: Interest cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $120.00

Worked Example 3

Problem: Find simple interest on $750 at 6% for 1 years.

  1. Use I=Prt.
  2. I=750×0.06×1.

Very beginner explanation: Interest cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $45.00

Worked Example 4

Problem: Find simple interest on $1200 at 3.5% for 4 years.

  1. Use I=Prt.
  2. I=1200×0.035×4.

Very beginner explanation: Interest cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $168.00

Worked Example 5

Problem: Find simple interest on $2000 at 2.5% for 5 years.

  1. Use I=Prt.
  2. I=2000×0.025×5.

Very beginner explanation: Interest cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $250.00

Worked Example 6

Problem: Find simple interest on $500 at 5% for 2 years.

  1. Use I = Prt.
  2. I = 500 × 0.05 × 2.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $50.00

Worked Example 7

Problem: Find simple interest on $1000 at 4% for 3 years.

  1. Use I = Prt.
  2. I = 1000 × 0.04 × 3.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $120.00

Worked Example 8

Problem: Find simple interest on $750 at 6% for 1 years.

  1. Use I = Prt.
  2. I = 750 × 0.06 × 1.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $45.00

Worked Example 9

Problem: Find simple interest on $1200 at 3.5% for 4 years.

  1. Use I = Prt.
  2. I = 1200 × 0.035 × 4.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $168.00

Worked Example 10

Problem: Find simple interest on $2000 at 2.5% for 5 years.

  1. Use I = Prt.
  2. I = 2000 × 0.025 × 5.

Very beginner explanation: Simple interest is calculated from the original principal, rate, and time.

Answer: $250.00

Practice Exercise

Create one new question about Interest cost. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.5 Interest rate

A rate compares two quantities measured in different units. This topic focuses on Interest rate .

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: 120 km in 2 h. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 120÷2=60.

Very beginner explanation: A rate compares two quantities measured in different units. This topic focuses on Interest rate .

Answer: 60 km/h

Worked Example 2

Problem: 180 km in 3 h. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 180÷3=60.

Very beginner explanation: A rate compares two quantities measured in different units. This topic focuses on Interest rate .

Answer: 60 km/h

Worked Example 3

Problem: 250 km in 5 h. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 250÷5=50.

Very beginner explanation: A rate compares two quantities measured in different units. This topic focuses on Interest rate .

Answer: 50 km/h

Worked Example 4

Problem: 72 km in 1.5 h. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 72÷1.5=48.

Very beginner explanation: A rate compares two quantities measured in different units. This topic focuses on Interest rate .

Answer: 48 km/h

Worked Example 5

Problem: 315 km in 4.5 h. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 315÷4.5=70.

Very beginner explanation: A rate compares two quantities measured in different units. This topic focuses on Interest rate .

Answer: 70 km/h

Worked Example 6

Problem: 120 km are travelled in 2 hours. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 120 ÷ 2 = 60.

Very beginner explanation: A unit rate compares a quantity with exactly one unit of another quantity.

Answer: 60 km/h

Worked Example 7

Problem: 180 km are travelled in 3 hours. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 180 ÷ 3 = 60.

Very beginner explanation: A unit rate compares a quantity with exactly one unit of another quantity.

Answer: 60 km/h

Worked Example 8

Problem: 240 km are travelled in 4 hours. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 240 ÷ 4 = 60.

Very beginner explanation: A unit rate compares a quantity with exactly one unit of another quantity.

Answer: 60 km/h

Worked Example 9

Problem: 300 km are travelled in 5 hours. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 300 ÷ 5 = 60.

Very beginner explanation: A unit rate compares a quantity with exactly one unit of another quantity.

Answer: 60 km/h

Worked Example 10

Problem: 360 km are travelled in 6 hours. Find the unit rate.

  1. Use rate = distance ÷ time.
  2. 360 ÷ 6 = 60.

Very beginner explanation: A unit rate compares a quantity with exactly one unit of another quantity.

Answer: 60 km/h

Practice Exercise

Create one new question about Interest rate. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.6 Account fees

A fee is a charge for a service or account. This topic focuses on Account fees .

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Account fees .

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Account fees .

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Account fees .

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Account fees .

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Account fees .

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Account fees. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.7 Loan fees

A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan fees .

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan fees .

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan fees .

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan fees .

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan fees .

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan fees .

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Loan fees. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.8 Monthly fees

A fee is a charge for a service or account. This topic focuses on Monthly fees .

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Monthly fees .

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Monthly fees .

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Monthly fees .

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Monthly fees .

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: A fee is a charge for a service or account. This topic focuses on Monthly fees .

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Monthly fees. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.9 Comparing loan offers

A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Comparing loan offers .

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Comparing loan offers .

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Comparing loan offers .

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Comparing loan offers .

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Comparing loan offers .

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Comparing loan offers .

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Comparing loan offers. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.10 Comparing account offers

Comparing account offers is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: Comparing account offers is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: Comparing account offers is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: Comparing account offers is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: Comparing account offers is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: Comparing account offers is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $560.00

Worked Example 6

Problem: Explain Comparing account offers in one simple sentence.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Comparing account offers becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: State the meaning, then give one small example.

Worked Example 7

Problem: Give one example that does not satisfy Comparing account offers and explain why.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Comparing account offers becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Identify the rule or condition that fails.

Worked Example 8

Problem: Show Comparing account offers using a table, diagram, number line, graph, or equation.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Comparing account offers becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Choose the representation that makes the relationship easiest to see.

Worked Example 9

Problem: After solving a Comparing account offers problem, how can you check the answer?

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Comparing account offers becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Use estimation, an inverse operation, substitution, or a second representation.

Worked Example 10

Problem: Give one real-life situation where Comparing account offers could be useful.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Comparing account offers becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Connect the idea to money, measurement, data, design, or technology.

Practice Exercise

Create one new question about Comparing account offers. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.11 Total borrowing cost

Total borrowing cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: Total borrowing cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: Total borrowing cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: Total borrowing cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: Total borrowing cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: Total borrowing cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Total borrowing cost. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.12 Shorter versus longer borrowing time

Shorter versus longer borrowing time is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: Shorter versus longer borrowing time is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: Shorter versus longer borrowing time is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: Shorter versus longer borrowing time is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: Shorter versus longer borrowing time is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: Shorter versus longer borrowing time is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Shorter versus longer borrowing time. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.13 Responsible borrowing

Responsible borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: Responsible borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: Responsible borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: Responsible borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: Responsible borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: Responsible borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Responsible borrowing. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.14 Consumer decision-making

Consumer decision-making is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Consumer decision-making: Identify a correct example.

  1. State the definition and show why the example fits.
  2. Show all important reasoning.

Very beginner explanation: Consumer decision-making is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: A correct response must satisfy the definition or rule and include a check.

Worked Example 2

Problem: Consumer decision-making: Identify a non-example.

  1. Explain which requirement is missing.
  2. Show all important reasoning.

Very beginner explanation: Consumer decision-making is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: A correct response must satisfy the definition or rule and include a check.

Worked Example 3

Problem: Consumer decision-making: Compare two cases.

  1. State one similarity and one difference.
  2. Show all important reasoning.

Very beginner explanation: Consumer decision-making is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: A correct response must satisfy the definition or rule and include a check.

Worked Example 4

Problem: Consumer decision-making: Apply the idea in a real situation.

  1. Translate the situation into mathematical language.
  2. Show all important reasoning.

Very beginner explanation: Consumer decision-making is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: A correct response must satisfy the definition or rule and include a check.

Worked Example 5

Problem: Consumer decision-making: Create and check your own example.

  1. Use the definition, then verify each condition.
  2. Show all important reasoning.

Very beginner explanation: Consumer decision-making is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: A correct response must satisfy the definition or rule and include a check.

Worked Example 6

Problem: Explain Consumer decision-making in one simple sentence.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Consumer decision-making becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: State the meaning, then give one small example.

Worked Example 7

Problem: Give one example that does not satisfy Consumer decision-making and explain why.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Consumer decision-making becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Identify the rule or condition that fails.

Worked Example 8

Problem: Show Consumer decision-making using a table, diagram, number line, graph, or equation.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Consumer decision-making becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Choose the representation that makes the relationship easiest to see.

Worked Example 9

Problem: After solving a Consumer decision-making problem, how can you check the answer?

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Consumer decision-making becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Use estimation, an inverse operation, substitution, or a second representation.

Worked Example 10

Problem: Give one real-life situation where Consumer decision-making could be useful.

  1. Read the definition of the topic.
  2. Use the definition to build the response.
  3. Check that the response matches every important condition.

Very beginner explanation: Consumer decision-making becomes easier to understand when you connect its definition to examples, non-examples, and representations.

Answer: Connect the idea to money, measurement, data, design, or technology.

Practice Exercise

Create one new question about Consumer decision-making. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

59.15 Real-life borrowing problems

Real-life borrowing problems is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Beginner Note

Identify what is given, what must be found, choose the correct rule or representation, work one step at a time, and check whether the result makes sense.

10 Worked Examples with Answers and Very-Beginner Explanations

Worked Example 1

Problem: Borrow $1000 at 6% simple interest for 2 years plus $25 fee. Find total repayment.

  1. Interest=1000×0.06×2=120.00.
  2. Total=1000+120.00+25.

Very beginner explanation: Real-life borrowing problems is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1145.00

Worked Example 2

Problem: Borrow $2000 at 5% simple interest for 3 years plus $40 fee. Find total repayment.

  1. Interest=2000×0.05×3=300.00.
  2. Total=2000+300.00+40.

Very beginner explanation: Real-life borrowing problems is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $2340.00

Worked Example 3

Problem: Borrow $750 at 8% simple interest for 1 years plus $15 fee. Find total repayment.

  1. Interest=750×0.08×1=60.00.
  2. Total=750+60.00+15.

Very beginner explanation: Real-life borrowing problems is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $825.00

Worked Example 4

Problem: Borrow $1500 at 4% simple interest for 4 years plus $30 fee. Find total repayment.

  1. Interest=1500×0.04×4=240.00.
  2. Total=1500+240.00+30.

Very beginner explanation: Real-life borrowing problems is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $1770.00

Worked Example 5

Problem: Borrow $500 at 10% simple interest for 1 years plus $10 fee. Find total repayment.

  1. Interest=500×0.1×1=50.00.
  2. Total=500+50.00+10.

Very beginner explanation: Real-life borrowing problems is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Answer: $560.00

Worked Example 6

Problem: Borrow $500 at 5% simple interest for 2 years plus a $20 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $50.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $570.00

Worked Example 7

Problem: Borrow $1000 at 4% simple interest for 3 years plus a $25 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $120.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1145.00

Worked Example 8

Problem: Borrow $750 at 6% simple interest for 1 years plus a $30 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $45.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $825.00

Worked Example 9

Problem: Borrow $1200 at 3.5% simple interest for 4 years plus a $35 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $168.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $1403.00

Worked Example 10

Problem: Borrow $2000 at 2.5% simple interest for 5 years plus a $40 fee. Find total repayment.

  1. Find interest with I = Prt.
  2. Interest = $250.00.
  3. Add principal, interest, and fee.

Very beginner explanation: The true borrowing cost includes both interest and any fees.

Answer: $2290.00

Practice Exercise

Create one new question about Real-life borrowing problems. Solve it step by step, include units or labels when needed, and check whether your answer is reasonable.

Chapter Notes, Practice, and Common Mistakes

Chapter Notes

  • Read the complete question before choosing an operation, formula, graph, or model.
  • Write technical words together with their meaning until you are comfortable using them.
  • Show all important steps so another student can follow your reasoning.
  • Keep units, labels, signs, axes, variables, and mathematical symbols clear.
  • Estimate before or after calculating when an estimate can help check reasonableness.
  • For real-life problems, explain what the final number means in the situation.

Extra Practice

  1. Create and solve a new question about Borrowing . Show your reasoning and check your answer.
  2. Create and solve a new question about Loan . Show your reasoning and check your answer.
  3. Create and solve a new question about Principal borrowed . Show your reasoning and check your answer.
  4. Create and solve a new question about Interest cost . Show your reasoning and check your answer.
  5. Create and solve a new question about Interest rate . Show your reasoning and check your answer.
  6. Create and solve a new question about Account fees . Show your reasoning and check your answer.
  7. Create and solve a new question about Loan fees . Show your reasoning and check your answer.
  8. Create and solve a new question about Monthly fees . Show your reasoning and check your answer.
  9. Create and solve a new question about Comparing loan offers . Show your reasoning and check your answer.
  10. Create and solve a new question about Comparing account offers . Show your reasoning and check your answer.
  11. Create and solve a new question about Total borrowing cost . Show your reasoning and check your answer.
  12. Create and solve a new question about Shorter versus longer borrowing time . Show your reasoning and check your answer.

Common Mistakes

  • Reversing an exchange-rate calculation.
  • Comparing financial options without including fees.
  • Treating interest rate as a whole number instead of a decimal in calculations.
  • Ignoring time when comparing savings or borrowing.
  • Giving a number without explaining what it means.
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30 Review Questions and Answers

Q1. What is important to remember about Borrowing?

Answer: Borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q2. What is important to remember about Loan?

Answer: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan.

Q3. What is important to remember about Principal borrowed?

Answer: Principal is the starting amount saved, invested, or borrowed. This topic focuses on Principal borrowed.

Q4. What is important to remember about Interest cost?

Answer: Interest cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q5. What is important to remember about Interest rate?

Answer: A rate compares two quantities measured in different units. This topic focuses on Interest rate.

Q6. What is important to remember about Account fees?

Answer: A fee is a charge for a service or account. This topic focuses on Account fees.

Q7. What is important to remember about Loan fees?

Answer: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Loan fees.

Q8. What is important to remember about Monthly fees?

Answer: A fee is a charge for a service or account. This topic focuses on Monthly fees.

Q9. What is important to remember about Comparing loan offers?

Answer: A loan is money borrowed that must be repaid, usually with interest and possibly fees. This topic focuses on Comparing loan offers.

Q10. What is important to remember about Comparing account offers?

Answer: Comparing account offers is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q11. What is important to remember about Total borrowing cost?

Answer: Total borrowing cost is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q12. What is important to remember about Shorter versus longer borrowing time?

Answer: Shorter versus longer borrowing time is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q13. What is important to remember about Responsible borrowing?

Answer: Responsible borrowing is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q14. What is important to remember about Consumer decision-making?

Answer: Consumer decision-making is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q15. What is important to remember about Real-life borrowing problems?

Answer: Real-life borrowing problems is an important Grade 7 idea in Borrowing Costs, Loans, Accounts, and Fees. Identify what is known, what must be found, choose an appropriate strategy, show the important steps, and check whether the result is reasonable.

Q16. Why should you show your steps?

Answer: Showing steps makes reasoning easier to verify and helps locate mistakes.

Q17. Why is estimation useful?

Answer: Estimation helps you judge whether a final answer is reasonable before accepting it.

Q18. Why do units matter?

Answer: Units tell what a value measures and prevent incompatible quantities from being mixed.

Q19. When should you round?

Answer: Usually round near the end of a calculation unless the question specifically asks for earlier rounding.

Q20. How can you check an answer?

Answer: Use an inverse operation, substitution, estimation, a graph, or a second method.

Q21. What should you identify first in a word problem?

Answer: Identify what is known, what is unknown, and the relationship connecting them.

Q22. What makes a final answer complete?

Answer: Give the value, correct units when needed, and a brief interpretation in context.

Q23. What should you do if an answer seems unreasonable?

Answer: Re-read the question, check copied values, signs, units, formulas, and calculations.

Q24. Why are diagrams useful?

Answer: A labelled diagram can reveal relationships between lengths, angles, areas, and other quantities.

Q25. Why are tables useful?

Answer: Tables organize values and help reveal patterns, relationships, rates, and missing information.

Q26. Why should you explain your reasoning?

Answer: Reasoning shows why a method works, not just what answer you obtained.

Q27. How do mistakes help learning?

Answer: Analyzing a mistake identifies the misunderstood rule or step and helps prevent the same error later.

Q28. How should you study this chapter?

Answer: Review definitions, redo worked examples without looking, practise mixed questions, and explain solutions in your own words.

Q29. When is a calculator useful?

Answer: A calculator is useful for lengthy arithmetic after you understand the mathematical setup and can estimate the expected size of the answer.

Q30. Why compare more than one strategy?

Answer: Different strategies can make a problem easier and provide a way to verify the result.