Shopping Wisely

You want to buy a new television. To pay with cash the TV would cost £299. A shop offers you credit saying "you will only need to pay £10 a week". What should you do?
1. Get the TV on credit and enjoy!
2. Find out how many payments of £10 I will have to make.
To buy the £299 TV on credit you will have to pay £10 a week for two years. How much does it cost altogether?
1. £240
2. £299
3. £1040
4. £520
If you buy the television on credit, how much more does it cost than buying with cash?
1. £641
2. £741
3. £541
4. £841
What else do you need to take into account before accepting the credit? (tick all the right answers)
1. In the smallprint there may be extra charges for credit.
2. In the smallprint there may be very big charges if you miss a payment.
3. I may be able to afford £10 a week at the moment but what if my circumstances change?
4. I can't afford not to see Eastenders this week.
A shop offers credit with an APR of 29.9%. What does APR stand for?
1. Annual Percentage Rate.
2. Acceptable Percentage Rate
3. Awful Percentage Rate
4. Actual Percentage Rate
What does APR mean?
1. APR acts as a useful tool for comparing loans from one lender to another. The APR shows you what the loan would cost, expressed as a percentage of the amount borrowed, if you borrowed the money for one year. This amount includes the cost of arranging the loan, the interest charge for the money lent and any charge for the collections. .
2. The bigger the APR the better the deal.
3. The APR is the percentage of interest you actually pay.
4. APR is a figure the loan companies make up to make their loans sound attractive.
Another shop offers the same television (£299) on credit. The payments are £17 a week for 1 year. What are the total payments?
1. £17
2. £850
3. £204
4. £884
How much interest will have to be paid on this television?
1. £585
2. £485
3. £385
4. £285

Shopping Wisely

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