Grades 6-8, 9-12
Compound Interest
Webinar
Students learn what compound interest is, how it is calculated, and appreciate the impact it makes on loans and investments. To begin the lesson students work through simple interest leading to compound interest problems. The students find the balance over time using compound interest as well as determine how much interest will be paid over a period of time.
90 minutes
Compound interest is a way of life in our society. Understanding how it works and how it can be used effectively to grow your investments is a critical lesson. Investing early and accumulating compound interest over the long term is an excellent way to make your money work for you. Interest can also work against you. For example, credit card companies charge interest every month on the balance owed; if you make only a minimal payment each month you will have to repay more than you spent on purchases.
Display Slide 9. Pose the problem (Simon deposits $400 in an account that pays 3% interest compounded annually).
Grades 6-8, 9-12
Webinar
Grades K-2, 3-5, 6-8, 9-12
Webinar
Grades 9-12
Manual
Grades 6-8
Manual
Grades K-2, 3-5
Manual