Top story

Netflix beat on profit, but its stock fell.

Its holiday-quarter revenue forecast came in just below what Wall Street expected.

Scoreboard

Your money

One percentage point can cost $70,000.

On a $300,000, 30-year mortgage, 7.4% costs about $200 a month more than 6.4%.

Pop quiz

A family borrows $300,000 for 30 years. If their mortgage rate is 6.4% instead of 7.4%, about how much less do they pay each month?

1. AAbout $20
2. BAbout $200
3. CAbout $2,000
4. DNothing, the loan amount is the same

B. About $200. The monthly payment drops from about $2,077 to about $1,877, a difference of roughly $200. The amount borrowed is the same, but the interest rate changes how much you pay to borrow it.

Discuss

Netflix makes money from subscriptions and from ads. Would you rather pay more for no ads or pay less and watch ads? What would make you cancel?

Worksheet

Today's worksheet

The story, the money lesson and questions, with an answer key on its own page.

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