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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 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 12 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 Cost of Building on Credit

D2.Eco.10.3-5

NameDate

Circle the best answer.

1.The white paper says cost falls on borrowing. What does borrowing cost?
  • A.Nothing, if a government borrows
  • B.A fixed fee
  • C.Interest, on top of repaying what was borrowed
2.Rates rise sharply. What happens to a building programme funded by borrowing?
  • A.Nothing changes
  • B.Bricks get cheaper
  • C.Each home costs more to finance, so fewer can be built
3.A government issues bonds. Who receives the interest?
  • A.The builders
  • B.The government
  • C.The people who lent by buying the bonds
4.What does an interest rate measure?
  • A.The cost of borrowing as a share of the amount borrowed
  • B.The size of the lender
  • C.The length of the loan
5.Why does a lender charge interest at all?
  • A.Because notes wear out
  • B.To discourage borrowing
  • C.The money could have earned elsewhere while it was lent
6.Why is a rate expressed as a share rather than a sum?
  • A.Sums are secret
  • B.So loans of different sizes can be compared
  • C.Shares are shorter
7.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
8.A family borrows to buy rather than wait seven years. What is the risk?
  • A.The house may move
  • B.The debt and its interest remain whatever happens to their income
  • C.Rates cannot change

LessonPrint · D2.Eco.10.3-5 · Set 12 · free to copy for classroom use

Answer key — The Cost of Building on Credit

Set 12. Prints on its own sheet.

  1. 1.Interest, on top of repaying what was borrowed
  2. 2.Each home costs more to finance, so fewer can be built
  3. 3.The people who lent by buying the bonds
  4. 4.The cost of borrowing as a share of the amount borrowed
  5. 5.The money could have earned elsewhere while it was lent
  6. 6.So loans of different sizes can be compared
  7. 7.It is more likely to repay, so the risk is lower
  8. 8.The debt and its interest remain whatever happens to their income

More practice for D2.Eco.10.3-5

Explain what an interest rate is.

Teaching this next? The Cost of Building on Credit is the 55-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.