Interest

Lead-in

  • What is a bank?
  • What services do banks offer?
  • Why do people use banks?
  • What is the difference between credit cards and debit cards?

Presentation

Pre

  • What is a budget and how do you create one?

Top Down

  • What is the meaning of “interest rate”? Read the text and find out.
  • Money lent regularly at a particular rate for the use of money paid.
  • Money paid regularly at a particular rate for the use of money lent.
  • Money paid regularly at a particular rate for the use of credit used monthly.
  • Money lent regularly at a particular rate for the use of money paid.
  • Money paid regularly at a particular rate for the use of money lent.
  • Money paid regularly at a particular rate for the use of credit used monthly.
The interest rate is an additional amount paid by a borrower to a lender for using the financial asset. It is calculated as a certain percentage of the owed sum. Usually, interest is paid on an annual basis. The principal sum can be paid back either entirely at the end of the term or via monthly payments. The latter is more common and convenient.

Basically, interest means financial compensation to lenders for their inability to use the asset within the loan period. Interest rates can be simple and compound, fixed or variable.

  • Simple & compound rates

Simple interest rate is calculated using the formula:

Simple Interest = Principal x Interest Rate x Time

For instance, you borrow $10000 for 8 years with a 21% interest rate. Your interest will equal:

$10000 x 21% x 8 = $16800

As you can see, the interest charge is even bigger than the principal sum. It is usually the case for most long-term payments.

Compound interest rates are even more profitable for banking institutions. Since it is applied more often. The formula is more complicated:

Compound Interest = Principal x [(1 + interest rate)n – 1], where n is the number of compounding periods.

In this case, the interest is charged not only on the original sum you borrowed but on the whole amount you owe after a compounding period. So to say, if you borrow $10,000 with the 21% interest rate, in a year you will owe $10,000 + $2,100 = $12,100. This way, the next annual percentage will be applied to the $12,100 sum.

Therefore, the compound interest rate is also known as “interest on interest”. The payments accumulate in a snowball effect, bringing profit to the lender and making you pay too much money. That is exactly why banks actively promote their loan services.

Modified from source

Bottom Up

  • True or False
  1. Interest is the compensation paid by a borrower to a lender for using a financial asset.
  2. Interest is always calculated and paid on a monthly basis.
  3. The principal sum can only be paid back entirely at the end of the loan term.
  4. Simple interest rates are more profitable for banks than compound interest rates.
  5. Compound interest rates are also known as “interest on interest”.
  6. Banks do not actively promote their loan services because of the snowball effect of compound interest.
  1. Interest is the compensation paid by a borrower to a lender for using a financial asset. True
  2. Interest is always calculated and paid on a monthly basis. False
  3. The principal sum can only be paid back entirely at the end of the loan term. False
  4. Simple interest rates are more profitable for banks than compound interest rates. False
  5. Compound interest rates are also known as “interest on interest”. True
  6. Banks do not actively promote their loan services because of the snowball effect of compound interest. False

Post

  • What can we do to avoid paying interest?

Target Language

Too Many, Too Much, and (Not) Enough

Too Much + Uncountable Nouns

  • She has too much money in cash.
  • Their house has too much furniture! 

Too Many + Countable Nouns

  • My friend buys too many books.
  • I have too many tests this week.

(Not) Enough (Countable and Uncountable)

  • There’s not enough time to study.
  • They don’t have enough water bottles.

Controlled Practice

  • Fill in the blanks with “too many“, “too much“, or “(not) enough” to complete each sentence correctly.

Example: There are _____ people in the room. < There are too many people in the room.

  1. We don’t have _______ time to finish the project. 
  2. There is _______ traffic on the highway this morning. 
  3. I have _______ shoes in my closet.
  4. There is _______ salt in this soup. 
  5. She doesn’t have _______ experience to apply for that job.
  6. He ate _______ pizza and felt sick.
  1. We don’t have enough time to finish the project. 
  2. There is too much traffic on the highway this morning. 
  3. I have too many shoes in my closet.
  4. There is too much salt in this soup. 
  5. She doesn’t have enough experience to apply for that job.
  6. He ate too much pizza and felt sick.

Freer Practice

  • Use the target language and complete the sentences according to your own ideas.
  1. Once I ate too much… and…
  2. I never buy enough…
  3. My best friend thinks too much about…
  4. Too many people worry about…
  5. There’s not enough money in this world to make me… because…
  6. If you try hard enough you…

Production

  • Use the target language to talk about your possessions.

Example: I have too many books about Zoology and not enough books about Microbiology. Also, I have too many pens, 30 to be more specific, and…

Homework

Choose one of the options for each context.

Example: She looked him in the eye and said: yes! (propose to someone/get divorced) > She looked him in the eye and said: yes! (propose to someone)
  1. I don’t have ______ time to complete the project before the deadline. (too many/enough/not enough)
  2. Sarah ate ______ cookies and now she feels sick. (too much/too many/enough)
  3. There are ______ people in the room to play a game. (too much/many/not enough)
  4. He didn’t study ______ for the test, and he failed. (too many/enough/not enough)
  5. The suitcase is packed with ______ clothes for a week-long trip. (too much/too many/too enough)
  1. I don’t have enough time to complete the project before the deadline.
  2. Sarah ate too many cookies and now she feels sick.
  3. There are not enough people in the room to play a game.
  4. He didn’t study enough for the test, and he failed.
  5. The suitcase is packed with too many clothes for a week-long trip.

Complete the sentences using “too many”, “too much” or “(not) enough”.

Example: He has _______ toys and doesn’t play with most of them. > He has too many toys and doesn’t play with most of them.
  1. I ate _______ cake at the party and now I feel sick. 
  2. There are _______ people in the waiting room. We should find a bigger space. 
  3. She spends _______ time on her phone and neglects her studies. 
  4. The restaurant ran out of chicken because there were _______ orders for it. 
  5. He didn’t drink _______ water during the hike and got dehydrated. 
  6. There are _______ seats in the auditorium for all the guests.
  1. I ate too much cake at the party and now I feel sick.
  2. There are too many people in the waiting room. We should find a bigger space. 
  3. She spends too much time on her phone and neglects her studies.
  4. The restaurant ran out of chicken because there were too many orders for it. 
  5. He didn’t drink enough water during the hike and got dehydrated. 
  6. There are not enough seats in the auditorium for all the guests.

Conjugate the bracketed verbs. 

Example: She’s sad because he _____ on her. (cheat) > She’s sad because he cheated on her. 
  1. My best friend __________ (earn) a lot of money at her store.
  2. They __________ (lend) me their notebooks.
  3. I never __________ (spend) more money than I’m supposed to.
  4. We __________ (save) up for a new car next year.
  5. They __________ (borrow) some money from their friends.
  1. My best friend earns (earn) a lot of money at her store.
  2. They lent (lend) me their notebooks.
  3. I never spend (spend) more money than I’m supposed to.
  4. We are saving (save) up for a new car next year.
  5. They borrowed (borrow) some money from their friends.

Put the words in the correct order

Example: have / partner. / you / your / an / argument / polite / when / Be / with > Be polite when you have an argument with your partner.

  1. wholesome / much / balanced / should / diet / out / food. / and / of / a / They / harm / of / eating / the / too / the / and / benefits / junk / point
  2. for / waiting / always / while / many / an / was / never / answer. / questions / asking / too / Julia
  3. it / I / too / up / spent / house / change / again. / and / fixing / money / it / to / much / the / buying
  4. to / still / strong / fears. / overcome / It / allow / not / to / his / was / inhibitions / enough / and / his / him
  5. stop / what / enough / not / meat / compensate / eating / by / and / eating / already / simply / is / to / you’re / more / It / of / eating.
  1. They should point out the benefits of a wholesome and balanced diet and the harm of eating too much junk food.
  2. Julia was always asking too many questions while never waiting for an answer.
  3. I spent too much money buying the house and fixing it up to change it again.
  4. It was still not strong enough to allow him to overcome his inhibitions and his fears.
  5. It is not enough to simply stop eating meat and compensate by eating more of what you’re already eating.

There is only one incorrect sentence. Find it and correct the mistake.

Example: I drank too many juice. > I drank too much juice.
  1. There are too many people at the party, it’s getting crowded.
  2. She ate too many apples, and now she feels sick.
  3. I don’t have enough times to finish my assignment.
  4. He has not enough money to buy a new car.
  1. There are too many people at the party, it’s getting crowded.
  2. She ate too many apples, and now she feels sick.
  3. I don’t have enough time to finish my assignment.
  4. He has not enough money to buy a new car.

Writing

Write a short text about a subject of your choice. Make sure you use the Target Language as much as you can.

Example: In my opinion, a person can’t eat junk food every week, It’s too much and…