Understanding percentages in loan interest rates and mortgages can be tough for Year 9 students.

Here are some common problems:

1. Tricky Calculations:

   • Percentages in interest rates make math harder.
   • For instance, if you borrow $100,000 at a 5$5,000 each year. This doesn't include other extra fees.

2. Confusing Words:

   • Words like “APR” and “compound interest” can confuse students.
   • This confusion makes it harder to understand the real costs of loans.

3. Hidden Fees:

   • Mortgages can have extra costs that aren't easy to see.
   • A loan with a 2% rate might sound great, but it could come with surprising expenses later on.

Solution:
To handle these issues, students can practice changing percentages into decimals and fractions.
Simplifying the terms they use and solving problems regularly can help them understand better and feel more confident.