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Standards for Calculating Simple Interest

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National Standards in Economics

Name: Interest Rates

Standard: 12

  • Students will understand that: Interest rates, adjusted for inflation, rise and fall to balance the amount saved with the amount borrowed, which affects the allocation of scarce resources between present and future uses.
  • Students will be able to use this knowledge to: Explain situations in which they pay or receive interest, and explain how they would react to changes in interest rates if they were making or receiving interest payments.

National Standards in Financial Literacy

Name: Saving

Standard:

  • Students will understand that: Saving is the part of income that people choose to set aside for future uses. People save for different reasons during the course of their lives. People make different choices about how they save and how much they save. Time, interest rates, and inflation affect the value of savings.

Name: Using Credit

Standard:

  • Students will understand that: Credit allows people to purchase goods and services that they can use today and pay for those goods and services in the future with interest. People choose among different credit options that have different costs. Lenders approve or deny applications for loans based on an evaluation of the borrower?s past credit history and expected ability to pay in the future. Higher-risk borrowers are charged higher interest rates; lower-risk borrowers are charged lower interest rates.

State Standards

Common Core State Standards

Name: 6.EE.A

Standard: Mathematics - Grade 6

Area: Mathematics - Grade 6

  • Apply and extend previous understandings of arithmetic to algebraic expressions.

Name: 6.RP.A

Standard: Mathematics - Grade 6

Area: Mathematics - Grade 6

  • Understand ratio concepts and use ratio reasoning to solve problems.

Name: 7.RP.A

Standard: Mathematics - Grade 7

Area: Mathematics - Grade 7

  • Analyze proportional relationships and use them to solve real-world and mathematical problems.

Name: MP1

Standard: Standards for Mathematical Practice

Area: Standards for Mathematical Practice

  • Make sense of problems and persevere in solving them.

Name: MP4

Standard: Standards for Mathematical Practice

Area: Standards for Mathematical Practice

  • Model with mathematics.

Name: MP6

Standard: Standards for Mathematical Practice

Area: Standards for Mathematical Practice

  • Attend to precision.