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

LessonPrint · D2.Eco.10.3-5 · Set 3 · free to copy for classroom use

Answer key — The Cost of Building on Credit

Set 3. Prints on its own sheet.

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

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.