QUESTIONS & ACTIVITIES

1. Use the loan calculator from the Suncorp website (www.suncorp.com.au).

a) Go to Calculator/Loan/Loan Term.  Calculate how long it would take to repay a loan of $10,000 if you repaid $200 per fortnight at an interest rate of 10%.  What would be the effect on the loan period if you increased your repayment to $220 per fortnight?

• What approach should you take to repaying a loan?     

b)  Go to Calculator/Investing/Investment Goal.  Imagine you had $1000 to start off your investment.  If you add $400 per month for two years and get a 6% return on your funds, what will you have after two years?

• If you saved $440 per month, what extra amount would you have after two years?
• When you are saving money, what should you try to do?

EXTENSION ACTIVITIES

1. When surveyed, the majority of Australians respond favourably to the word 'credit'.  'Debt', on the other hand, generally receives a negative response. Yet credit and debt are two sides of the same coin.

Explain this apparent contradiction in the attitudes of Australians.