Interesting...very interesting...

Currently our read-aloud book is Radiant by Vaunda Micheaux Nelson. This morning we read the part where the two sisters are pooling their money to buy a Beatles album but are still coming up short, so they appeal to their brother to loan them fifty cents. He agrees to this—with interest. 

"Oooh! What's the interest?" Alexander asked.

"Do you mean how much interest? Or what is interest?" I asked.

"Ummmm..."

"Okay, so you mean what is interest..." 

"Sure."

So we had a discussion about what interest is and how it accrues and when you owe it (which is all variable depending on the terms of the loan). We also talked about how interest can be considered exploitative, for example in Islam charging or paying interest is a sin because it's seen as taking advantage of others. And you gotta admit they have a point—even in our economic system, which allows for interest, some loans can be considered "predatory" because the conditions are outlandishly unfair.

I mean, there's the whole Scrooge trope, right? Warning us about how greed and exploitation are not cool...and pretty immoral...and yeah...

So, anyway...I explained that every loan will have its own conditions...but, basically, if the sisters borrowed fifty cents from their brother, for example, and he charged them a penny per week until they were able to pay him back and it took them...six weeks...to get him his fifty cents back, he'd actually be expecting fifty-six cents (with six cents on top of what they initially owed him). 

"Huh," Phoebe said.

She slithered off her chair and walked around the table to Zoë. 

"Zoë," she whispered, pulling on Zoë's sleeve. "Did you give me my money yet?"

"Oh, no!" Zoë moaned. 

"You owe Phoebe money? How could you possibly owe Phoebe money?"

"I told her I'd give her a quarter to be in one of my videos."

"What videos?"

"I was making gymnastic videos last night."

"Oh, and you..."

"...bribed her to be in one for twenty-five cents," Zoë explained.

"Yeah!" Phoebe said. "Did you pay me?"

"Not yet..."

"That's okay," Phoebe shrugged. "Now I want...a dollar...because...interest!"

"What?!" Zoë shrieked.

She'd better pay Phoebe quickly. That's some steep interest!