The Cost of Building on Credit is a free printable Grade 3 to Grade 5 social studies worksheet on what an interest rate is, aligned to C3 Framework indicator D2.Eco.10.3-5. It prints 8 questions with an answer key on its own sheet of paper, in 25 versions that each ask different questions, so no two students in the class work from the same page. Print it from the browser or download it as a PDF — no account, no email.
Set 1 of 25 · the same problems every time you open this link.
C.The cost of borrowing as a share of the amount borrowed
2.Why might a government be charged less than a company?
A.Companies pay tax
B.It is more likely to repay, so the risk is lower
C.Governments are larger
3.A family borrows to buy rather than wait seven years. What is the risk?
A.The debt and its interest remain whatever happens to their income
B.The house may move
C.Rates cannot change
4.Rates rise sharply. What happens to a building program funded by borrowing?
A.Nothing changes
B.Each home costs more to finance, so fewer can be built
C.Bricks get cheaper
5.Why does a lender charge interest at all?
A.The money could have earned elsewhere while it was lent
B.To discourage borrowing
C.Because notes wear out
6.Why is a rate expressed as a share rather than a sum?
A.Shares are shorter
B.Sums are secret
C.So loans of different sizes can be compared
7.A government issues bonds. Who receives the interest?
A.The builders
B.The people who lent by buying the bonds
C.The government
8.The white paper says cost falls on borrowing. What does borrowing cost?
A.Nothing, if a government borrows
B.Interest, on top of repaying what was borrowed
C.A fixed fee
LessonPrint · D2.Eco.10.3-5 · Set 1 · free to copy for classroom use
Answer key — The Cost of Building on Credit
Set 1. Prints on its own sheet.
1.The cost of borrowing as a share of the amount borrowed
2.It is more likely to repay, so the risk is lower
3.The debt and its interest remain whatever happens to their income
4.Each home costs more to finance, so fewer can be built
5.The money could have earned elsewhere while it was lent
6.So loans of different sizes can be compared
7.The people who lent by buying the bonds
8.Interest, on top of repaying what was borrowed
Questions about The Cost of Building on Credit
What does the The Cost of Building on Credit worksheet cover?
It practices what an interest rate is — 8 questions for Grade 3 to Grade 5, all on C3 Framework D2.Eco.10.3-5: Explain what an interest rate is. The instruction to students is “Circle the best answer”, and the answer key follows on the next sheet.
Which C3 Framework indicator does The Cost of Building on Credit practice?
D2.Eco.10.3-5, under Economics for Grade 3 to Grade 5. The published indicator reads: “Explain what interest rates are.” The worksheet assesses that indicator rather than a paraphrase of it.
What age or grade is this worksheet for?
The Cost of Building on Credit is written for Grade 3 to Grade 5, typically ages 40-41. It is one of the sheets on D2.Eco.10.3-5, so it suits any student working at that standard — including older students revisiting it and younger ones working ahead.
Does The Cost of Building on Credit come with an answer key?
Yes. All 8 answers are generated from the same problems as the questions, so the key cannot drift out of step with the sheet. It starts on a fresh sheet of paper, after the questions, so it is not handed out with the class by accident.
How many different versions of The Cost of Building on Credit can I print?
25 — one per student, and all 25 ask different questions. Set 1 downloads the whole class as a single PDF. Every version is fixed to its own address, so a sheet printed today holds the same problems when you reopen it next week.
Is The Cost of Building on Credit free to print and photocopy?
Yes. The Cost of Building on Credit, its answer key and its 25 versions are free to print and photocopy for your own class, with no account, no email capture and no subscription at the download step. Please do not resell them or republish them as your own.
Is there a lesson plan to teach D2.Eco.10.3-5?
Yes — “The Cost of Building on Credit” is a 55-minute Grade 3 to Grade 5 plan for D2.Eco.10.3-5, timed section by section, with the misconceptions to expect and an exit ticket. The Cost of Building on Credit is the practice that follows it.