This is a story about a broke student who wants to apply for a loan to pay her tuition. What you need to do is to help the student choose the best loan option for her.
This is a story about a broke student who wants to apply for a loan to pay her tuition. What you need to do is to help the student choose the best loan option for her.
Do you want to start the game?
<center><img src="https://media4.giphy.com/media/hrCEBMy9fyMGTsmjxd/giphy.gif?cid=ecf05e47449cc622ec1df19cfc56391c223f179831ffe804&rid=giphy.gif&ct=g" alt="cat flips book"></center>
[[Yes]]
[[No]]＼( ^▽^ )／ Great! Let's get started.
Why would this game help a broke student choose the best loan for her? It's because of [[predatory lending.]](￣ー￣*|||
[[Yes]]Predatory lending typically refers to the imposition of unfair, deceptive or abusive loan terms on borrowers. In many cases, these loans charge high fees and interest rates, deprive borrowers of equity, or place creditworthy borrowers in loans with lower (and more costly) credit ratings, all to the benefit of the lender.
However, a significant amount of predatory lending is done by more established institutions such as banks, finance companies, mortgage brokers, lawyers or real estate contractors.
<center><img src="https://images.foolproofonline.info/images/predatory_lending.m3-w800-16-9.jpg" alt="predatory lending"></center>
Now let's get to the point. You will need to choose the best option for this broke student from the loan options below.
[[How to choose]]With the same interest rate, you need to compare the principal amount in the loan options. The more principal you have, the more interest you will pay.
With the same principal amount, you need to compare the interest rates in the loan options. The higher the interest rate, the more interest you will pay.
With the same principal and interest rate, you need to compare the repayment term time in the loan options. The longer the repayment period time, the more interest you will pay. This game does not include the case of paying off all the loans early.
There is also a situation where the where the principal amount, interest rate and repayment term are all different. In this case, you need to use this formula:
Principal loan amount x Interest rate x Time (aka Number of years in term) = Interest
Interest + Principal loan amount = The total amount you have to pay
<center><img src="https://media2.giphy.com/media/l0DAHAQ3Ex4XbL1ni/giphy.gif?cid=ecf05e47fcq1zssl4pn5i77afejhkcq7nlp6sk9dr1jt1yn7&rid=giphy.gif&ct=g" alt="lets get started"></center>
Now, you need to choose the loan with the lowest interest rate from the loan options below.
[[$10,000 - 2% - 12 months ]]
[[$9,000 - 2% - 12 months ]]
[[$11,000 - 2% - 12 months]]You are wrong... The correct answer is B [[$9,000 - 2% - 12 months ]]You are right! This loan option has the lowest interest.
<center><img src="https://media2.giphy.com/media/vDWRVg8ZsjNWB583HV/giphy.gif?cid=ecf05e47mo64skt3adu8zrvhgu4kyo7qc4zisv58eu10lvnx&rid=giphy.gif&ct=g" alt="you are right"></center>
Do you want to start the next game?
[[Next]]
[[Exit]]You are wrong... The correct answer is B [[$9,000 - 2% - 12 months ]]Lucy needs to buy new school supplies so she takes out a $300 loan. Which loan is a predatory loan (In case you've forgotten what predatory lending is, it is simply a loan that is unfair, fraudulent, and has an extremely high interest rate.)
[[$300 - 5% - 3 months]]
[[$300 - 7% - 5 months]]
[[$300 - 10% - 10 months]]
Thank you for playing this game.
<center><img src="https://media4.giphy.com/media/MDJ9IbxxvDUQM/giphy.gif?cid=ecf05e47pk8thv8orh3ft15h6lvz9e882m1ostejzmfitzb0&rid=giphy.gif&ct=g" alt="cat kissing"></center>The correct answer should be [[$300 - 10% - 10 months]].This is the right answer! This is a predatory loan because it has an extremely high interest rate and a longer repayment term than either of the other two loan options.
[[Next round]]
[[Exit]]Jake is a junior in college, he takes out a loan to buy some of his course text books. Which loan is going to save Jake money?
[[$700 - 4% - 6 months]]
[[$780 - 6% - 10 months]]
[[$750 - 3% - 4 months]]The correct answer should be [[$300 - 10% - 10 months]].This is the wrong answer. The correct answer will be [[$750 - 3% - 4 months]].This is the wrong answer. The correct answer will be [[$750 - 3% - 4 months]].This is the correct answer because if Jake chooses this loan option, he will pay the least amount of principal plus interest.
[[Exit]]
