Jim wants to borrow R10,000 from the bank for his graphic design studies. The bank offers a 5% interest rate on student loans. The document defines financial terms related to simple and compound interest such as present value, interest rate, interest, term, and future value. It provides examples of how to calculate simple interest, future value, present value, interest rate, and term. The document also explains the differences between simple and compound interest and provides examples of calculating compound interest, future value, present value, interest rate, and term for compound interest scenarios.