Se-Na's mom: Come on, everyone! Dinner's ready!
Se-Na: You always make egg rolls, mom.
Se-Na's mom: Don't complain! Who knew that the little chick you bought last year would grow into such a fine hen and give us all these eggs? Hahaha! We save so much money on eggs!
Se-Na: Mom, I bought the chick, but Se-Mi's the one who raised it.
Se-Na's dad: Actually, I like being able to eat eggs everyday. When I was a kid, eggs were really hard to come by.
Se-Mi: Yeah, who knew that chick you bought would grow into such an awesome hen?
Se-Na: (If only I hadn't brought that chick home, I wouldn't have to eat eggs all the time.)
Narration: Six months ago, when Se-Na had just finished school for the day, something caught her attention ... It was a little yellow chick!
Se-Na: Wow! Look at the cute little chicks! How much are they?
Merchant: They're \1,000 each.
Se-Na: Huh? That's too much!
Merchant: Well, don't buy one then.
Se-Na: (Oh, but they're so cute! And I feel so sorry for them. Stuck in that little cardboard box! Fine, \1,000 isn't too much for a cute little chicky!)
Se-Na: Okay, give me one, please!
Narration: Se-Na was just happy to get the cute little chick out of that gloomy cardboard box! But what would her family think...?
Se-Na: I'm home! Mom, I bought a chick today!
Se-Na's mom: Oh, Se-Na, it could die really easy.
Se-Na: I wasn't going to buy it, but I felt so sorry for it! Anyway, I'm going to take good care of it...
Se-Na's mom: As if! When you can't even take care of yourself?
Se-Mi: Se-Na, when did you get home? Hey, is that a chick? Are we going to keep it?
Se-Mi: Do you have anything to feed it?
Se-Na: Huh? What should we feed it?
Se-Mi: Duh, you can't just get a chick and not get any food for it! I'll go buy some chick feed.
Narration: Well, well, well... Se-Mi seems to be more thoughtful than her older sister, Se-Na! And before long, Se-Mi came back with some chick feed!
Se-Mi: Eat this and grow!
Chick: Chirp! Chirp!
Se-Na's mom: What are you doing, Se-Na? Hurry up and finish your dinner. I've got tons to do!
Se-Na: Hmm...? Oh, yeah. What do you have to do?
Se-Na's mom: There’s a neighborhood meeting today and it's going to be at our house.
Se-Na: What? A neighborhood meeting? You're going to be really busy!
Se-Na's mom: I think they're already here.
Se-Na: Who is it?
Song-I: It's me!
Se-Na: Hey, what's up?
Song-I: I heard the neighborhood meeting was at your house, so I came here with my aunt.
Song-I's aunty: Huh? What's that sound?
Se-Na: We have a hen. Everyone loves her because she lays such nice eggs!
Song-I's aunty: Really? How fascinating!
Se-Na's mom: Hi!
Song-I's aunty: Hello, I’m Song-I's aunt.
Se-Na's mom: Well, it looks like you're the first ones here! Why don't you have a seat until the others come?
Song-I's aunty: Thank you. So you keep a hen here?
Se-Na's mom: Yes! She's great. She lays us a warm egg every morning. We save a lot on eggs thanks to her! Haha...
Se-Na: Do you really like the hen that much, Mom?
Se-Na's mom: Of course! I love her!
Song-I's aunty: A chicken laying eggs... Well, that reminds me of that proverb that goes, 'money makes more money'.
Song-I: Aunty, money makes more money?
Song-I's aunty: Why of course! Money certainly does create more money.
Song-I: What do you mean?
Se-Na: I don't really know what you mean.
Song-I's aunty: To make more money from the money you already have, you need to put it in the bank, instead of just storing it away in a safe place at home. 'Money makes more money' means that the money you save at the bank accumulates interest.
Se-Na's mom: Aha! So you're talking about interest on savings!
Song-I's aunty: That's right! But there are different types of interest, like compound interest and simple interest. Simple interest is...
Narration: Uh-oh... Se-Na and Song-I don't look like they understand what Song-I's aunt is talking about. Maybe it's a little too confusing for them.
Song-I's aunty: Is it too confusing for you?
Song-I: Aunty, it's too hard. But I want to know how money makes more money...
Song-I's aunty: Phew... Well, I could explain it, but it might be too hard for you kids to understand.
Se-Na: We still want to know. Is there an easy way to understand it, do you think?
Song-I's aunty: Well, let me see...
Song-I's aunty: Oh, yes! Why didn't I think of that before? There's quite a big chicken farm in the next village! It originally started with only 2 hens but it's gotten really big now.
All: A chicken farm?
Song-I's aunty: Yes, you guys should go there and visit it! You ought to be able to gain first-hand experience and learn what interest is.
Song-I: Se-Na, what do you think? Do you want to go tomorrow?
Se-Na: Tomorrow? Sure! Tomorrow's a holiday!
Song-I: Well, shall we see if the other guys want to go as well?
Se-Na: Yeah! I bet they will!
Song-I's aunty: Great! I'm sure you'll enjoy it!
Se-Na's mom: Hahaha! I'm sure they will.
Narration: The next day, the 4 friends who were going on the trip gathered in front of Se-Na's house, one by one...
Kang-Ho: So what's with the chicken farm all of a sudden?
Jae-Min: Are you going to get us some eggs or something?
Song-I: Our learning experience doesn't have to be limited to the classroom.
Se-Na: We need first-hand experience!
Kang-Ho: So that's why you want us to go to the chicken farm?
Kang-Ho: Sounds great! Let's go!
Jae-Min: Yeah! Let's go!
Se-Na's mom: C'mon, kids! I'll be your chauffeur for the day! Get in!
Se-Na's mom: Is everyone in? Let's go!
Se-Na: Mom, what's with all the traffic?
Se-Na's mom: Yes, it's really crowded, isn't it? I guess since it's a holiday, everyone wants to get out of town. Wow... If the traffic stays like this, we probably won't be able to get to that chicken farm on time!
Jae-Min: (Looks like I'll have to use my magic! It's a good time for it.)
Narration: Oh, no! Jae-Min's using his magic again! But since it's for his friends on a special day, maybe his dad won't mind so much.
Se-Na's mom: Hey! We've passed the traffic jam! Looks like we'll make it to the chicken farm after all!
Jae-Min: (I'm such a wizard! Hahaha.)
Farmer: Welcome, y'all! You got here fast!
Farmer: So you folks want to take a look around the chicken farm?
Se-Na's mom: Yes, it would be really nice if you could show the kids around the farm today.
Farmer: Sure thing! I'm glad that you folks took the time to come out here to see our farm! Okay, right this way!
Song-I: Wow, this is so cool! Do all these hens lay eggs everyday?
Farmer: Yep! Altogether, they lay 300 eggs a day!
Kang-Ho: How many chickens do you have?
Farmer: Well, I have 300 chickens here!
Jae-Min: Wow! Here, feel how warm this is!
Se-Na: You must make quite a bit of money if you sell 300 eggs everyday!
Farmer: Yep, I don't do too bad. As long as they're alive, the hens keep on laying eggs.
Se-Na's mom: That reminds me of the proverb Song-I's aunt told us: 'money makes more money'.
Narration: That's it! If the hens are the principal, then the eggs are the interest! Just like how the hens keep laying eggs until they die, the principal that's saved in a bank will also accumulate interest as long as it stays in the account! This is called simple interest.
Jae-Min: Wow! It really makes sense now. Just think of the hens as money and the eggs as the interest!
Kang-Ho: Then what if we think of the hens as money, and the number of eggs they lay in a year as interest?
Se-Na's mom: That's what annual interest is!
Se-Na: Annual interest?
Se-Na's mom: Yes! Annual interest is the amount of interest the bank promises to give a customer for one year when he/she puts money into a bank account.
Kang-Ho: Mr. Farmer, does each of these hens lay 1 egg a day?
Farmer: Yep, so that's 300 eggs a day. Why?
Kang-Ho: And there are 365 days in a year, so that means one hen lays 365 eggs in a year
Narration: This is exactly how simple interest is calculated! If $1000 is put into a bank account at an interest rate of 10%, then 1000 x 10% = 100! Annual interest of $100 will accumulate on the $1000 saved. It's exactly the same logic as a hen laying eggs for a year!
Se-Na's mom: Anyway... Will these eggs hatch?
Farmer: Yes, of course. Why do you ask?
Se-Na's mom: Then do you think you could give me a couple? I'd like to take them home and hatch them!
Farmer: Sure! No problem at all! Hahaha! I tell ya, I didn't have all these hens when I first started. It all began with a single hen my friend gave me as a gift. The eggs that hen laid became chicks... And then after a while... Well, after a while we had enough hens to open a chicken farm!
Farmer: I guess that single hen my friend gave me started it all.
Se-Na's mom: Wow! Thank you! (Well, maybe I could hatch these eggs, and then when the chicks become hens and lay more eggs... We could open a chicken farm as well! Hahaha!)
Narration: Se-Na's mom sure is having a pleasant daydream! But if that's how it works... that means that the principal accumulates interest, and the interest becomes principal that can accumulate even more interest... Aha! This is what compound interest is!
Se-Na: Mom! Mom!
Se-Na's mom: What is it?
Se-Na: Here, Mr. Farmer gave us this, too.
Se-Na's mom: Gosh, thank you so much!
Se-Na: What's wrong, mom? You don't look too well.
Se-Na's mom: Uhh... It's nothing. Kids, let's go now. Thank you again for showing us around, Mr. Farmer!
Farmer: You're welcome. I'm glad I was able to teach the kids something valuable.
All: Take care, Mr. Farmer!
Narration: Did you understand our little lesson on interest at the chicken farm? You're not sure how to calculate interest? Well, you just need to multiply the principal by the interest rate! That's how easy it is!