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The Price of Borrowing is a free printable Grade 3 to Grade 5 social studies worksheet on what an interest rate is, aligned to Common Core standard 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 pupils in the class work from the same page. Print it from the browser or download it as a PDF — no account, no email.

Set 16 of 25 · the same problems every time you open this link.

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Set 1 has all 25 in a single PDF. All 25 sets ask different questions.

The Price of Borrowing

D2.Eco.10.3-5

NameDate

Circle the best answer.

1.Why might a lender charge one borrower more than another?
  • A.Because one is less likely to repay
  • B.Because one lives nearer
  • C.Because one is taller
2.You borrow 100 pounds and repay 105. What is the 5 pounds?
  • A.A fine
  • B.Interest: the price of borrowing the money
  • C.A tax
3.Why does a lender charge interest at all?
  • A.Because the money could have been used elsewhere while it was lent
  • B.Because coins wear out
  • C.To be unkind
4.A boatman borrows to buy a barge in 1845. Why was that a risk?
  • A.Interest cannot be charged
  • B.Barges float
  • C.If his trade fell he would still owe the money and its interest
5.The railway company borrows to lay track. What must it plan for?
  • A.Never repaying
  • B.Charging no fares
  • C.Earning enough from fares to repay the loan and its interest
6.A rate rises from 3 to 8 in a hundred. What happens to borrowing?
  • A.Borrowing costs more, so fewer people borrow
  • B.Nothing changes
  • C.Borrowing gets cheaper
7.What does an interest rate measure?
  • A.How much you earn
  • B.How much it costs to borrow, as a share of what you borrowed
  • C.How long you take to repay
8.You save 100 pounds and are paid 3 pounds a year. What is that?
  • A.Interest paid to you for lending your money to the bank
  • B.A wage
  • C.A gift

LessonPrint · D2.Eco.10.3-5 · Set 16 · free to copy for classroom use

Answer key — The Price of Borrowing

Set 16. Prints on its own sheet.

  1. 1.Because one is less likely to repay
  2. 2.Interest: the price of borrowing the money
  3. 3.Because the money could have been used elsewhere while it was lent
  4. 4.If his trade fell he would still owe the money and its interest
  5. 5.Earning enough from fares to repay the loan and its interest
  6. 6.Borrowing costs more, so fewer people borrow
  7. 7.How much it costs to borrow, as a share of what you borrowed
  8. 8.Interest paid to you for lending your money to the bank

More practice for D2.Eco.10.3-5

Explain what an interest rate is.

Teaching this next? What Borrowing Costs is the 45-minute plan for it, with the misconceptions to expect.

All Grade 3 to Grade 5 worksheets

Last reviewed 2026-09-05. Aligned to D2.Eco.10.3-5 of the C3 Framework for Social Studies State Standards.