Year 9
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Lesson details
Key learning points
- In this lesson, we will learn about the general principles of mortgages and mortgage loan repayment.
Licence
This content is made available by Oak National Academy Limited and its partners and licensed under Oak’s terms & conditions (Collection 1), except where otherwise stated.
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5 Questions
Q1.
If a person earned £30,000, they would pay no income tax.
True
Q2.
In the UK (as of July 2020), you can earn £12,500 and pay no income tax.
False
Q3.
If I earned £9,000 per year, how much would I pay in income tax?
£1,800
£3,600
£4,050
Q4.
If an individual earned £35,000 a year, how much income tax would they pay?
£0
£14,000
£7,000
Q5.
If an individual earned £130,000 a year, how much income tax would they pay?
£42,000
£60,000
£67,500
5 Questions
Q1.
A mortgage is a debt that must be repaid, with interest, as a result of purchasing a house.
False
Q2.
If you had a mortgage, you would prefer to have a high interest rate.
True
Q3.
If I borrowed £100,000 in the form of a mortgage at a rate of 4% per year interest for 5 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).
£104,000
£120,000
£520,000
Q4.
If I borrowed £350,000 in the form of a mortgage at a rate of 3.2% per year interest for 20 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).
£574,000
£657,147
£974,000
Q5.
Which would cost more? A £200,000 mortgage that had a rate of 0.5% for 35 years or a £120,000 mortgage that had a rate of 3% for 25 years?
£120,000 mortgage that had a rate of 3% for 25 years