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Compound Interest Teacher Resources
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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 should be taught after students have mastered the laws of exponents and are able to explain what an exponential graph looks like.
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.
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.
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!
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.
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.
Students 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 students in M&M candies is made to make the lesson more interesting for the students.
Students explore the concept of personal finance. In this philanthropy instructional activity, 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.
In this compound interest instructional activity, 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.
Learners explore the concept of compound interest. In this compound interest lesson, students determine compound interest on 100 dollars at 3% over time. Learners construct a formula for their table of values from the 100 dollars. Students discuss the risk involved with a credit card.
Students follow teacher demonstration to compute and graph given interest problems on their TI-nspire calculator. In this compound interest lesson plan, students follow teacher lecture and demonstration to illustrate the effects that principal, interest rate and type of interest have on a loan.
In this simple and compound interest worksheet, students find the ending balance to simple interest problems. They determine the total value of investments compounded over a period of years. This four-page worksheet contains 20 interest problems. Answers are provided on the last two pages.
Students explore saving and investing money. In this middle school personal finance lesson plan, students define and use investment vocabulary, explore compound interest and its effect of savings, and compute simple and compound interest. Students compare and contrast annual percentage rate and annual percentage yield.