Compound Interest Teacher Resources
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Compound Interest and e (Part 2)
Sal continues to look at changing the length of compounding time, from daily to hourly compounding interest. Now he is able to show that compounding 100% annual interest converges on the number 2.71É or e as the number of compounding periods becomes a bigger and bigger number.
Compound Interest and e (Part 3)
Continuing with the lesson on compound interest, in this video, Sal derives the general formula for any amount of principle, interest rate, and compounding periods over one year.
Compound Interest and the Number e
Students apply the formula to solve problems with compound interest. In this algebra lesson, students define continous growth rate, decay and growth as it relates to exponential functions and Principal, Interest and Rate as it applies to money problems.
Buying Cars/Financing Cars Compound Interest
Provide a real world context in which exponential functions are used to determine a eal world phenomena such as compound interest and exponential growth. This lesson plan should be taught after students have mastered the laws of exponents and are able to explain what an exponential graph looks like.
What is the Formula for Compound Interest?
View this tutorial for more than just a description of the formula for compound interest! An instructor goes through a problem, showing how to find simple interest and compound interest. After she completes each version, she explains the difference and provides the formula for compound interest. A great tool for strengthening understanding of interest.
Making Money and Spreading the Flu!
Paper folding, flu spreading in a school, bacteria growth, and continuously compounded interest all provide excellent models to study exponential functions. This is a comprehensive resource that looks at many different aspects of these applications including creating tables, graphs, and equations. Use part or all of this great resource.
Business Management and Administration: Compound Interest - A Millionaire's Best Friend
Many math concepts are covered through this resource: percentages, decimals, ratios, exponential functions, graphing, rounding, order of operations, estimation, and solving equations. Colorful worksheets and a link to a Google search for fractals images are included. Note that the lesson plan states it is the second of five lessons in an investing unit, but the other pieces were not located on the publisher's website. The lesson does, however, hold plenty of value on its own.
Simple versus Compound Interest
Students investigate simple and compound interest. In this Consumer Mathematics instructional activity, students use the TI-nspire handheld to compare simple and compound interest. The instructional activity includes problem solving and graphing of results.
Introduction to Earning Interest Financial Basics - Teens and Money - SaveAndInvest.org
Middle schoolers need to learn how to make their money work for them. From engaging in the lesson presented here, they will gain an understanding of investment vocabulary, how compound interest works, and will compute simple and compound interest in simulated investment scenarios. The lesson is a fine example of how to build real-life skills into your daily teaching. A terrific teaching idea!
Pupils analyze the variables in the formula of a compound interest. They model the increase or decrease of an investment using compound interest and discuss different compounding periods.
Students examine the concepts of trade-offs and opportunity cost to decide between savings accounts with simple interest and those with compound interest. They calculate interest earned on account balances while working in groups and make a decision on which is the best option.
M & M Interesting
Middle schoolers compute and collect interest payments in the form of M&M candies. In this mathematics lesson, students work in small groups to compute either simple or compound interest. They compare the growth of their accounts after six cycles. A recommendation to "pay" the middle schoolers in M&M candies is made to make the lesson more interesting for the students.
Compounding the Problem
Students explore the concept of compound interest. In this compound interest lesson, students are given a scenario where they must create a recursive function to represent the scenario. Students calculate the interest after given intervals of time.
Saving Power = Spending Power
Students explore different methods of saving. In this Economics/Consumer Math instructional activity, students use follow-along worksheets to calculate simple and compound interest and explore and compare different methods of saving.
Spend, Save, Invest or Donate (9-12)
Students explore the concept of personal finance. In this philanthropy lesson plan, students examine decisions they make about money as they discover the definitions of philanthropy, resources, scarcity, choice, benefits, costs, opportunity cost, interest, interest rate, principal, simple interest, compound interest, and compounding.
Climbing the Savings Mountain
Students investigate way in which to save money, create financial goal, and predict what inflation do to money saved. They study the differences between simple and compound interest.
In this compound interest worksheet, students solve 3 problems after reading about compound interest. They determine the cost of the Apollo missions, they calculate inflation and the cost it would be to send man to the moon today and they calculate the inflation and cost of delayed mission. They determine a scientists salary rate gain over 20 years compared to what it should be with a 3% yearly inflation rate.
Compounding The Problem
Eleventh graders calculate compound interest for real-life situations. They begin calculating interest using a recursive function in problem situations. Once they understand this iterative process, they translate the function into a formula.
Introduction to Earning Interest: What are APR and APY?
Learners explore saving and investing money. In this middle school personal finance lesson, students define and use investment vocabulary, explore compound interest and its effect of savings, and compute simple and compound interest. Learners compare and contrast annual percentage rate and annual percentage yield.
Predicting Your Financial Future
Students explore the concept of compound interest. For this compound interest lesson, students determine compound interest on 100 dollars at 3% over time. Students construct a formula for their table of values from the 100 dollars. Students discuss the risk involved with a credit card.